Professional Documents
Culture Documents
The following Chapter dwells into the collective opinions and experiences of the Sample
Respondents which were expressed in their unique individual styles. The responses from
the Sample were assembled, tabulated, and classified to draw meaningful inferences and
are presented in a textual format coupled with Human Resource action plan and practices.
Business environment has become complex and aggressive. At any given moment of time,
and finally by successfully implementing an action plan. Failing in any one of these would
lead to loss of market share, profits in the long-term. Organizations could no longer
succeed by producing the same goods or services year after year. Instead, they must adapt
rapidly to the changing consumer demands and needs to cope with an unpredictable
140
In response to a question changes made in your organization are a reaction to
percent Respondents disagreed for adaptability toward change by their organization and 2
Without an exception, the Indian Banking Sector had undergone changes due to economic
reforms. Changes had taken place with respect to: the ownership pattern of Banks; changes
in delivery channels; and range of services provided to the customers. Banks like State
Bank of India, Punjab National Bank, Axis Bank, ICICI Bank, and HDFC Bank, have
broken the long-standing jams and started interacting in more friendly and professional
manner with their customers. Banks had started accepting online applications, which
Banking Organizations. Canara Bank has tied up arrangements in both life and non-life
insurance segments. In life insurance segment, Canara Bank has associated with AVIVA
Life Insurance Company India Private Limited to undertaken the marketing of life
alliance with United India Insurance Company Limited for marketing of non-life insurance
products.
141
CHART IV. 1
ORGANIZATIONS RESPONSIVENESS TO CHANGES
60% Adaptability
50% 48%
41%
40%
30%
20%
9%
10%
0% 2%
0%
Strongly Disagree Neutral Agree Strongly
Disagree Agree
To Study the change, three forms of change were discussed. First, Banks needs to change
which the markets derive value from the organization and the organization derives value
from the market. Second, process changes in Banks. Process here referred to the overall
layout of the place concerned i.e., how the Banks branches is to designed to ensure
may excel to add value to their services made these processes simplified. To satisfy
customers, organizations brought entirely new internal processes, which customers could
easily understand and follow it. Third form of change was organizations responding to
customer needs. In order to focus upon long-term relationship building with customers
deep knowledge of customer needs was emphasized. Due to the rapid changes taking
place, organizations needs to develop a more focused and coherent approach to manage
142
In response to a question your organization has made continuous changes in its products
and services from 186 Respondents, 52 percent Respondents strongly agreed and 45
percent Respondents agreed that their organizations made changes in the products and
In response to a question your organization has made continuous changes in its processes
strongly agreed that their organizations had brought changes in the processes of their
Respondents agreed that their organizations were identifying changes taking place in
Overall Banks had undergone three major changes. As in case of traditional Banking there
existed products which were limited to drafts, telegraphic transfers, bankers cheque and
internal transfer of funds. Foreign, Private and few Public Sector Banks has also
cards, cash management services, investment products and tax advisory services.
143
Today Banks have become into one-stop financial shop. For instance, ICICI Bank has
added features to their services by allowing there users to access account information over
a secure line, request chequebook and stop payment and transfers of funds on-line. ING
Vysya Banks product portfolio offered products that catered to every financial
requirement, for all life stages. ING Vysya Bank has developed the LifeMakerTM a simple
tool that helped customers to choose a plan according to their requirements of saving,
investment, or retirement and life stage of customers. State Bank of India brought an
entirely new spectrum of loan products like housing loans, car loans, personal loans,
consumer durable loans, education loans, loans against share and financing against gold.
Banks are also providing financial assistances to agriculturists, through a network of rural
and semi-urban branches and offered schemes covering a wide range of agricultural
activities like crop loan, finance to horticulture, farm mechanization schemes, land
Payment processes exercised by Banks are very different from the conventional methods.
Due to the introduction of technology based processes different methods have evolved by
which customers could make payments. Different methods of payment today are - cash,
cheque, demand drafts, credit cards, debit cards, and electronic payments. Electronic
payments could be made in the form of Electronic Funds Transfer (EFT), Electronic
Clearing Service (ECS) for small value repetitive payments and through Real Time Gross
Settlement (RTGS) System for large value payments. Customers could make payment as
144
Banks like State Bank of India, ICICI Bank, HDFC Bank, and many others Banks has
become systematic and simpler to solve customers problems. Customer just needs to walk
in the Banks branch and press the key related to his problem and machine automatically
allocates the concern person from the branch to the customer, according to the type of
problem of the customer. This has helped customers to save time and to overcome his
hesitation and lack of knowledge about Banking processes. Bank of India has developed a
customer centric infrastructure layout that enabled Bank to provide increased customer
service levels with ability to attract new customers and manage customers with the help of
related to their: customers profiles, location and cash position; customers preferences;
and complaints. Banks had also focused on region-specific campaigns rather than national
media campaigns due to diversity in country like India. Another region-specific effort
made by Banks was to use local languages on Automated Teller Machines. As customers
found it much easier to operate in their local languages. Banks also noted down customers
recommendations and inquired from customers about their impression about the services.
All Commercial Banks including Public Sector Banks has understood the importance of
customer retention.
145
CHART IV. 2
MAJOR CHANGES IN BANKS
32%
3%
0% 0% 0 0 0% 0% 2% 0%
Change accepted as an opportunity and a right perspective of the change might slice
competitive edge over the competitors for the organization. The question here arises
whether Change in Banks was strategic or not? If organization predicts changes, coming
ahead in the business from the study of influences of various environmental factors; that
developments, one could state that the nature of change is strategic in the organization and
146
In response to a question your organization is able to anticipate changes, either internal or
strongly agreed that their organizations were predictable with concern to changes which
Respondent responses were further corroborated by the following observations: Banks are
investing in the state of the art technology that ensured reliable service delivery; structural
changes has taken place in Banks, prominently in Public Sector Banks; top-level strategic
planning cells analyzed aspects related to technology up-gradation for instance, in Banks
Customer feedback and data collection was carried specifically in State Bank of India
where customers could register their complaints through a touch screen device placed at
the Banks branch that collected customers feedback. Further, this feedback machine
know how operations were carried. Another strategic approach adopted by Branch
Managers was that they conducted conferences to acquaint employees about existing and
expected environmental threats and opportunities. Almost all Public, Private and Foreign
volatile changes in world financial markets and caution steps taken towards these changes.
147
CHART IV. 3
PREDICTABILITY OF CHANGE IN BANKS
Preditability
80% 74%
70%
60%
50%
40%
30% 26%
20%
10% 0% 0% 0%
0%
Strongly Disagree Neutral Agree Strongly
Disagree Agree
Towards being strategic, organizations must follow the law of change to survive in this
competitive era. Due to changing internal and external environment, rapid changes
occurred in the organizations. Organizations needed to have four main aspects with respect
view change as a vital constituent of their survival strategy. Second, Change as a process,
means change could not be looked as with specific beginning or ending, suggesting
changes should flow like stream through time 1. Third, change management means
role to carry the processes of changes. Management helps to change employee attitudes
uninterrupted. To get insight on these four aspects Respondents were questioned on these.
148
In response to a question your organization recognizes change as a crucial act from 186
agreed that their organization considered change as a vital component (Chart IV. 4).
agreed that their organizations perceived change as process. (Chart IV. 4).
These finding were further corroborated by the following aspects: management talked with
employee representatives, union leaders about issues like- introduction of technology into
branch timings or working hours ; change curriculum has been included as a component in
149
Considering change being an essential factor, Banks had taken up skill up-gradation
through proper training and re-training to keep their workforce efficient enough to take up
the challenges due to the environmental changes unfolding every day. Training
programmes on change management were organised by Banks like Bank of India, Kotak
Mahindra Bank, Vijaya Bank, UCO Bank, and ICICI Bank with institutes like Indian
(NIBM). Due to change, sometimes even employees might need to even unlearn their past
Banks considered change as a process. For this reason, Banks hired outside specialist or
consultants for changes occurring in their organizations. Banks faced changes due to
acquisition or mergers taking place in order to achieve increased market presence. Apart
from these Banks, undergo continuous changes due to the technological changes.
Banks developed state of the art accounting softwares like Online Tax Accounting
collect taxes on the behalf of Central Board of Direct Taxes, Government of India. Banks
using software needs to upgrade their Information Security Management System to ensure
controlling, application security, database security, and other measures, which prevent fund
transfer frauds. This raised the need of technological changes as technology becomes
150
Other types of changes implemented by Banks included for instance, financial systems like
Basel I in which Banks were focused on credit and market risks. Basel II implementation
endeavoured Banks to constantly upgrade their risk management systems to address the
cope changes in the requirements of their customers. For example, ING Vyasa opens on
Sundays, ICICI opens from 8 a.m. to 8 p.m. on weekdays and provided 24 hour customer
service. Oriental Bank of Commerce service branch in Delhi required their officers to work
in Morning Shift, between 6 a.m. to 1p.m. and in the Evening Shift, from 2 p.m. to 9 p.m.
for this employees were given inconvenience allowance Rs. 2, 500/- per month to motivate
ICICI Bank has successfully brought and implemented various changes to overcome the
effects of recession during 2008- 2009. ICICI Bank clearly communicated the
stability. In Indian Bank (IB) Human Resource Practices, beginning from hiring to
retirement was brought under SAP software. The Hong Kong Shanghai Banking
Corporation (HSBC) and ICICI Bank has introduced uniform for their employees in the
151
CHART IV. 4
IMPLEMENTATION OF CHANGE IN BANKS
74% 76%
72%
60%
40%
28% 26%
16%
8%
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Performance standards help organizations to know, the strengths and weaknesses of their
organizations. Thus, defining outcome metrics clearly identified the gaps existing in the
152
In response to question your organization is able to achieve both tangible and intangible
Respondents strongly agreed that their organizations were able achieve performance
Banking Sector has recorded marked improvement, as Non Performing Loans (NPL) has
declined and Banks profitability levels has trended upwards 2. Banks had built up their
assets size and diversified their product ranges from rural to urban products, along with
diversification internationally. For instance, Bank of Indias net profit reached Rs. 3007
crore over and above the profit level of Rs. 2009 crore in 2008. The operating profit of the
Bank went up by 47.45 percent from Rs. 3701 crore in 2007-08 to Rs. 5457 crore in 2008-
09. The Returns on Assets reached the benchmark level of 1.0 percent 3. Besides financial
measurements, Banks realized that its revenue comes from their customers who are willing
to pay for the values provided to them by the organizations. Further, the performance
improvements were also indicated by the increased market share, customer retention,
CHART IV.5
PERFORMANCE OF BANKS
Performance
80% 71%
70%
60%
50%
40%
30%
20% 14% 15%
10% 0% 0%
0%
Strongly Disagree Neutral Agree Strongly
Disagree Agree
153
As we discussed performance of an organization, at its backdrop lies Strategic Intent. Thus,
defining Strategic Intent of an organization for Business or for Human Resource Strategy
expressed with the help of following components: the vision serves the purpose of stating
what the organization wishes to achieve in the end .Vision statement also guided
employees about the services that they have to provide to their customers; the mission
statement that defines the basic reason for the existence of the organization. The mission
statement mentions about its purpose, the nature of business and customers it seeks to
serve and satisfy; the values and principles that defines the personal values and helps
employees to match their values with the organizational values and principles. Thus,
defining the values and principles helped to avoid the situations of conflict and confusion.
quality; the goals provide guidance, direction, facilitate in planning, motivation and helps
needed to be realistic which were achievable by employees; and the objectives defined, as
strategic objectives which are guide to organization towards growth plans and financial
objectives are related to the financial achievements of the organization. Thus, identifying
organizations existing vision, mission, values and principles, goals and objectives gave a
logical starting point for strategic management because these clearly presented situation
154
In response to a question on employees are well aware of their respective service level
Respondents strongly agreed that they were aware about the purposes of their services.
Whereas, 6 percent Respondents disagreed on any specific purposes being stated by their
In response to a question your organization has a purpose of existence in the society from
agreed that their organizations had a particular purpose to serve to the society. Whereas,
In response to a question core values and principles are clearly defined in your
Respondents strongly agreed that they are aware about the values and principles that they
have to adhere to, while working in the organization. Whereas, 10 percent Respondents
percent Respondents agreed and 13 percent Respondents strongly agreed that the goals
defined to them were realistic. Whereas, 33 percent Respondents disagreed about goals
155
In response to a question Mergers/Acquisitions, Integration/Diversification are considered
important strategies for growth in your organization from 186 Respondents, 56 percent
Respondents strongly disagreed that the growth plans formulated did not specified about
the strategic aims of the organization and 1 percent Respondents remained neutral on this
earnings or return on investment etc. are achievable and realistic from 186 Respondents,
64 percent Respondents agreed and 13 percent Respondents strongly agreed that their
organizations had achieved the financial objectives, already defined. Whereas, 23 percent
Respondents disagreed suggesting that their organizations were not able to achieve
Banks have begun to explain strategic vision to their employees. For instance, Indian Bank
defines its vision as first choice of the common man and to achieve this vision employees
need to know how to achieve this vision of their organization. To reach to the common
man Indian Bank has opened an exclusive Core Banking Solution branch along with online
bio-metric voice guided Automated Teller Machine facilities in Dharavi, Mumbai, to target
a large number of migrant workers who were under the unbanked sector from many
decades and covered 770 villages under financial inclusion project (2006-07)4.
156
Banks also stressed on defining the purpose statement, which also acted as a guideline for
structuring strategies. For instance, Yes Bank in their mission statement emphasized
towards their commitment to add long-term value to the Society. Apart from vision and
mission, every Banks branch manager define role to their employees that consisted of set
of goals to be achieved by them in a particular period. Further, these goals were defined in
terms of financial objectives like Return on Investment (ROI) and Return on Equity
(ROE). Finally, clearly defined goals and objectives reduced the difficulty in the
coordination of the activities and events. In context of Human Resource Department, the
vision of Human Resource Department in some Banks is to have excellent people for their
aims and business plans through the resourcing, development, and motivation of
workforce. Banks had the following values and principles: right people in the right job;
continuous improvement; compliance with the law; treating people with respect, fair and
CHART IV. 6
RESPONDENTS RESPONSE ON STRATEGIC INTENT
33%
27%
20% 23%
18% 15% 14%
12% 13% 10% 13% 13%
6%
0% 2% 0% 0% 0% 0% 0% 0% 2% 0% 0%
157
Human Resource Strategy and Organization Change
capacity building measures to handle advanced risk management system and to equip
themselves with appropriate skills. Human Resource Strategy, calls for reviewing and
reengineering the Human Resource functions, both at the level of corporate Human
Resource Division and at the level of branch managers to proactively manage people at
Strategies and Change intertwined with each other. Human Resource personnels may
suggest best Human Resource Strategy, which could combine resources and behaviour to
were managed to produce higher results .Whereas, 18 percent Respondents disagreed that
their exist hardly any combined fruitful effect of the resources present in their organization
158
CHART IV. 7
HUMAN RESOURCE STRATEGY IN BANKS
Existence of change has emphasized the existence of Human Resource Strategies in the
organization. The change factors that Banking Organizations has to face are: workforce
demographic changes which are complex to understand. These exist in the organizations
due to the diversity of the workforce; changes in employee expectations due to changing
social values ; technological changes are taking place at a faster rate and Banks are
required to make review of the arrival of new tasks, techniques, and the skills associated
vision, values, strategy, structure, and management system; changes in customers means
the changes taking place in the needs of customers; and changes in the economic
159
In response to a question diversity exists within your organization workforce from 186
Respondents strongly agreed that changes in the employees expectations had occurred.
Whereas, 13 percent Respondents disagreed on any kind of variations that had occurred
Respondents strongly agreed that the technological changes were adopted by their
In response to a question there have been change in your organization structure owing to a
Respondents strongly agreed that organizations structure had changed resulting into
160
disagreed on any structural changes taken in their organizations and 2 percent
In response to a question customers preferences have changed in the past few years from
agreed that change in customer preferences had been observed. Whereas 11 percent
organization had hardly paid attention towards the changes in the customer preferences and
In response to a question your organizational plans and policies are influenced by Indias
Respondents strongly agreed that their organizational plans and polices were influenced
their organizations were not influenced due to the changes in the economic conditions and
In the context of organizational changes, it was observed that Banks workforce constituted
of different age groups, people from different castes, religions, and gender. The Private
Sector Banks were transparent on employment terms and boosted job opportunities for
employment of women. Banking Sector encouraged a high recruitment rate for women, as
these jobs were perceived to provide a better stability, lesser travel, regular working hours,
and a secure working environment, dissimilar from many other fields of jobs. Women like
Naina Lal Kidwai of the HSBC Bank, Shikha Sharma of the Axis Bank, and Chanda
161
Employees expectations had changed from the traditional allurements such as job security,
attractive remuneration, and housing to the employees wanting more information about
their organizations, to know reasons behind managers decision and they want to be valued
Banks constantly face changes in technology and accordingly some of them have
reconfigured the skill mix of their employees. The Public, Private, and Foreign Banks had
adopted technology and benefited with respect to quality of risk management systems,
better service delivery, improved handling of accounts and remittances and reduced
operation cost in spite of vast expansion strategy adopted by them. For instance, Dena
Bank has launched several technology enabled services like Dena bill-pay, Dena M-
banking, Dena internet banking, Multi-city cheque facility and value added services
Union Bank of India has brought value added services like- online ticketing of air and rail,
online tax payment, online trading of shares, online bill payments, online Demat
information apart from the regular Banking services. With the introduction of technology,
jobs had become more broad based and this made it mandatory on the part of Human
Resource Management to train workers and to replace them in time. Human Resource
Management plays an important role in selection and induction of competent people, and
that ensured that they maintain their affiliation with the organization.
162
Banks had realigned their existing human resource and readjusted staffing patterns. Due to
the advent of computerization clerical and subordinate staffs were in excess in each Bank.
Jobs were designed and restructured for Banks to get flattened organization structure,
which also encouraged work innovation in the organizations. Surplus staff was relocated or
reassigned with the job duties to overcome surplus manpower. Mobility of the staff was
recommended and on this aspect, management had negotiated with employees and
Not only Public Sector Banks like State Bank of India, Punjab National Bank, Canara
Bank and Central Bank of India but also Foreign Banks like Standard Chartered Bank and
BNP Paribas periodically introduced volunteer retirement schemes to get rid of extra flab 6.
Economic changes also influenced organizations and were mainly analyzed by top
management. Human Resource Managers played a key role to scan and study the direct
and indirect influences of these economic uncertainties on the Human Resource Strategies.
In relation to this, Human Resource Managers adopted role of protector and screener in the
Banking Industry. Economic uncertainties brought the change of interest rates, mergers
bonus incentives of employees. For instance, ICICI Bank viewed economic changes and
accordingly adopted a conscious strategy for building of stable and low cost funding base
by consolidating their balance sheets and setting clear targets. This resulted into
moderation of business volumes which helped Bank to position better and regain their
growth cycle 7.
163
CHART IV. 8
ORGANIZATION CHANGE VARIABLES INFLUENCING BANKS
71%
63%
60%
54%
49% 48%
41% 41%
34%
26%
22%
20%
13% 13%
11%
8% 7%
5%
2% 2% 2% 3% 4%
0% 0% 0% 0% 0% 0% 1%
164
People Centric Human Resource Strategies
The prime aim of the Human Resource Strategy is to put in place the building blocks of
best practices for people management. This entailed developing a template of best
practices in people management for the use. To know that organizations really valued
In response to a question your organization consider its employees as value creators and
its policies also reflect the same from 186 Respondents, 56 percent Respondents agreed
and 34 percent Respondents strongly agreed that their organization considered their
employees as value creator for their organization and organizations policies were
policies were not employee centric and 2 percent Respondents remained neutral on this
aspect (Chart IV. 9). To add to this above findings, Banks had repeatedly mentioned in
their various reports that human capital to be the most important valuable asset in this era
of competition.
CHART IV. 9
BANKING ORGANIZATIONS BEING PEOPLE CENTRIC
165
Any organization could be called as people centric organization if it adapts people centric
like - flexible benefits, flexi work arrangements, health and safety and working conditions.
Various employees related strategies are discussed. Teamwork here referred to as a set of
Along with teamwork, employees needed to be well informed thus raising the significance
of the information sharing. Sharing information helped to remove confusion and resistance
among employees. Information flow needs to be clear and consistent to generate trust and
organizations well being. Initiative nature of employees allowed employees to take work
related decisions covering issues like work methods, task assignments and performance
166
Further workplace feedback encourages understanding, acceptance, and ultimately
potential trouble and rectify if any mistake existed. Researchers had also emphasized that
there should be a report after performance analysis of an employee and at the end detailed
results and recommendations based on the analysis of resources and participants feedback8.
and workers negotiate on terms and conditions of employment. Though cooperation may
exist in an organization, still conflicts may arise in the organization due to day-to-day
working, which could be handled with the help of grievance handling procedures.
progression, as it aligns employees needs with career opportunities available within the
organization.
In response to a question consistent joint efforts from superiors, peers and subordinates is
present during day to day functioning from 186 Respondents, 76 percent Respondents
agreed and 20 percent Respondents strongly agreed that in their organizations seniors,
peers and subordinates provided support to each other at work place. Whereas 4 percent
Respondents disagreed that, hardly any joint efforts were made by employees in their
167
In response to a question information from top management is clear and consistent from
agreed that their organizations emphasized on the consistent and clear information flow.
Whereas, 4 percent Respondents disagreed on any kind of emphasizes been made by their
Respondents strongly agreed that their creative suggestions were encouraged by their
strongly disagreed that hardly creative suggestion were heard or promoted by their
organizations, and 4 percent Respondents remained neutral on this aspect (Chart IV. 10).
disagreed that employees were hardly motivated to participate in the decision- making
In response to a question your job gives you enough prospects to resolve problems from
agreed that they were allowed to take decisions within ones area of operations. Whereas,
11 percent Respondents disagreed suggesting that the job of employees hardly provided
any prospects to resolve problems at the workplace and 2 percent Respondents remained
168
In response to a question improvement in quality of life of employees and customers is
Respondents strongly agreed that quality of life was emphasized by their organizations.
Whereas, 14 percent Respondents disagreed that hardly any emphasize was made to
Respondents strongly agreed that they were provided proper feedback in their
organizations. Whereas, 9 percent Respondents disagreed that hardly any emphasize was
strongly agreed that in their organizations there existed cooperation among employees
strongly disagreed that hardly any cooperation existed between employees and
management this aspect hinted towards existence of conflicts between employees and
management 7 percent Respondents remained neutral on this aspect (Chart IV. 10).
169
In response to a question grievances and their resolutions are handled in a proper manner
agreed that their career aspirations were taken care of by their organizations. Whereas, 23
percent Respondents disagreed that hardly any career planning was carried by
organization for their employees and 2 percent Respondents remained neutral on this
well as the organization. In the work settings, their existed an urgent requirement to
generate new ideas and to translate these into practical applications. Federal Bank believed
in we and emphasized that individuals joining their organization must work as a part of
the team. To support teamwork top management in Banks used a mixture of formal and
informal, direct and indirect means of communication with employees. For instance, State
Bank of India used circular, report, manual, and proceeding of the board as a means to
provide information to their employees. The Bank also, recognized the importance of
170
Banking Organizations need to promote creativity among their employees. As customers
view Bank as a solution provider to their problems and look for the best solution. As a
result, Private and Foreign Sector Banks have already started seeking for creative ideas for
modern products for their customers. ICICI Bank implemented a project named
Creative support to Banking Industry requires that their employees actively initiate new
ideas for providing prompt services to their customers. Employees were found to be
participating at different level like at -board level, staff work councils level, joint councils
and committee level, collective bargaining level, and through suggestion schemes and
quality circles. Private and Foreign Bank employees participate in formulation of their
compensation packages. This helped to develop cordiality and friendly environment which
explicitly helped Banks to motivate employees. Banks also provided quality of work-life to
their employees to reduce number of grievances among employees. For instance, HDFC
Bank promoted Employee Think Tank and introduced constant interaction with employees
in the employee town halls and open houses to cover the gaps between employees and
organization. Cementing of the gaps resulted into greater openness and transparency in
launching initiatives like voice of employees and upward feedback or full circle feedback.
The ultimate motivate behind this was to ensure maximum employee touch points for
171
ICICI Bank has specifically empowered their newly joined employees and provided
complete authority to them to handle their job roles. After two weeks of an orientation
programme employee were given assignments and were motivated to make decisions in the
very first week itself. Apart from employee participation, ICICI Bank practised
feedback, process employees were made aware of problem areas and were made to
Kotak Mahindra Bank has developed a simpler way for feedback named as Kotak
Integrated Sales and Service System (KISSS) worked as an online application, which
defined the action plan for their employees. This online application consisted of details
related to relationship calling, daily sales report, and appointment schedules. This software
also sends weekly details about the performance scores and indicated employees lagging
point so that employees could quickly work upon on the same before the end of the month.
Kotak Integrated Sales and Service System clearly predicted the performance of their
employees portfolio.
different levels. In Banks, a grievance procedure has become an integrated part of the
policy to promote better relationship between management and employees. For instance,
Bank of Baroda has introduced a help-line directly connected to Chief Executive Officers
office for those employees who faced any sort of crucial problems. ICICI Bank has started
staff space on the intranet where employees could participate in collaborative activities
such as- contributing documents, engaging in discussions and posting or answering queries
172
Banks also provided potential career opportunities for their employees. Opportunities such
programme, promotion to a higher level and position rotation. For instance, in HDFC
employees across various levels and planned succession planning for them according to
their career aspirations. ICICI Bank has established development centres that focused on
people available in the organization rather than to hunt for talent from outside. These
centres evaluated strengths, assessed development needs, and provided career opportunities
Bank of Baroda has undertaken a Human Resource initiative named as Khoj where
organization-wide talent identification from officers to clerks was done and employees
with high potential were deployed or promoted in the key business areas. Chinatrust
Commercial Bank (CTCB) has created Individual Development Plan (IDP) for their key
staff members. The Individual Development Plans comprised of career path and growth
plan for employees in the years ahead. These plans included a detailed review of
It was observed in Public Sector Banks that for top level vacancies political interference
for filling up of the vacant positions was there. Along with this, hindrance like seniority
based career progression and reservation quotas also acted as an obstacle in the way of
173
CHART IV. 10
EMPLOYEE DEVELOPMENT RELATIONSHIP STRATEGIES
20%
76%
Teamwork 0%
4%
0%
19%
63%
Information Sharing 0%
18%
0%
19%
63%
Creativity 4%
13%
1%
9%
78%
Participation 2%
11%
0%
Strongly
9% Agree
77%
Empowerment 1% Agree
13%
0%
23% Neutral
63%
Quality of Work-life 0%
14%
0% Disagree
25%
64%
Workplace Feedback 2% Strongly
9%
0% Disagree
22%
Employee-management 55%
7%
Cooperation 15%
1%
16%
67%
Grievances Handling 1%
16%
0%
10%
66%
Career Progression 1%
23%
0%
174
Further, for Human Resource Strategy to become people centric, organizations need to
provide benefits to their employees for social security purposes. Providing benefits helps
growing number of organizations have adopted family friendly policies related to formal
or informal sets of terms and conditions designed to enable employees to combine family
providing them flexible work arrangements and to provide protection against eventualities
of todays modern lifestyle, employees were given flexible benefits as per their
In response to a question employees are allowed to choose flexible benefits like medical,
insurance and retirement benefits from 186 Respondents, 43 percent Respondents agreed
and 13 percent Respondents strongly agreed that their organizations provided facilities
like childcare and flexible working hours whenever employees required. Whereas, 27
any flexible work arrangements were provided by their organization and 2 percent
175
In response to a question employee family friendly polices like childcare, flexible work
time are realized from 186 Respondents, 49 percent Respondents agreed and 8 percent
Respondents strongly agreed that they were provided with benefits like medical,
Respondents strongly disagreed that hardly any emphasis was given towards flexible
benefits for employees, and 3 percent Respondents remained neutral (Chart IV. 11).
percent Respondents strongly agreed that regular health related programmes had taken
place in their organizations. Whereas, 17 percent Respondents disagreed that hardly any
health awareness programmes were carried by their organizations (Chart IV. 11).
In response to a question working conditions provided to employees are good from 186
agreed that the working conditions provided by their organizations were good . Whereas,
3 percent Respondents disagreed that hardly any emphasis was being made by their
Private and Foreign Banks has introduced practices like parent leave, flexible working
hour and supportive childcare polices. These practices provided sympathetic understanding
and material aid to their employees to deal with stressful situations. Access to flexible
scheduling helped employees to manage their work and family and increased job
176
For instance, HSBC Bank offered flexible working hours to their staff instead of
conventional days per year basis. HSBC Bank also provided on-line job share register,
which enabled employees to form a professional job sharing partnership. The Bank has
offered flexible working arrangements to around 10 percent of their employees that was
6,500 workforce 9.
Retirement benefit like pension is provided to employees of Public Sector Banks as one of
the major benefit to employees. Public Sector Bank employees are eligible to receive a
benefit pension equivalent to 50 percent of their last salary drawn. In this, few variations
might exist from one Public Sector Bank to another. For instance, SBI Bank employees
received 40 per cent of their last salary drawn in the form of pension, provident fund and
gratuity 10.
Public Sector Banks also provided medical benefits to their employees like medical
expenses incurred on diseases. For medical benefits Banks tied with hospitals at major
centers in India like Delhi, Mumbai and other metro cities where employee and his family
members could walk-in. In these hospitals, reserved beds were kept for employees and
their dependents.
Banks also emphasized on the health issues like physical health, mental health, stress
management, Acquired Immune Deficiency Syndrome (AIDS), alcoholism and drug abuse,
and violence at work place. Fitness programmes and employees assistance to prevent
health problems and health hazards that might occur were suggested to employees.
177
Most of the Public Sector Banks conduct medical check-up for their employees of 45 years
of age and above once in 2 years in the approved diagnostic centre. Bank employees work
on computer for more number of hours thus, the risks associated are highlighted to
Apart from these, recently after the instance of 26 November 2009, Mumbai terror attack,
measure to provide relief and reduce stress among employees. Banks also stressed upon the
cash safe and constant observations were made by installation of Close Circuit TV (CCTV)
to monitor and record the movements inside the branch premises round-the-clock.
CHART IV. 11
27%
23% 24%
21%
18% 17%
8%
5% 3%
3%
0% 0% 0% 0% 1%
178
Effectiveness of Human Resource Practices required Human Resource Strategies
Human Resource Practices depend on having the right Human Resource Strategy.
effectiveness. Effectiveness of Human Resource Practices in this Study means how well
Respondent strongly agreed that in their organizations, Human Resource Practices were
implemented and well practised. Whereas 15 percent Respondents disagreed that, hardly
their organizations practised well formulated Human Resource Practices (Chart IV. 12).
CHART IV. 12
EFFECTIVENESS OF HUMAN RESOURCE PRACTICES IN BANKS
80% 73%
70%
60%
50%
40%
30%
20% 15% 12%
10% 0% 0%
0%
Strongly Disagree Neutral Agree Strongly
Disagree Agree
179
Human Resource Strategy in organizations acted as an active endeavour that managed
people and their skills with the immediate and long-term aims of the business in their
mind. The following Human Resource Strategies were studied in the backdrop of Banking
manpower requirements change, due to the new emerging areas of operation and
maximize productivity and minimise output cost per unit with the help of human resource
budget; talent acquisition referred to as the policies and programmes that ensured that
organization gets and keeps talent it needed ; deployment helps to overcome surplus or
excess staff in Departments resulting into effective deployment of resources so that they
could handle positions handed over to them ; job profile and designating employees in well
planned manner make employees accountable for their decisions, for the job assigned to
employees also helped to gain productivity for organizations; Compensation signifies that
the rewards given to employees were as per their performance to encourage employees to
contribute towards the fulfilment of the company goals. Understanding the workforce and
recognizing what their employees find rewarding acts as, an effective reward; promotion
productivity. Motivation through, rewards also contributed towards higher market value of
the company and positively related to employees satisfaction and commitment; managing
workforce diversity maximizes the utilization of employees potential and recognized the
180
Thus, organizations need to successfully manage different groups; and finally outsourcing
services such as hiring, training and many other services helps to overcome complexities
right place and at right time from 186 Respondents, 65 percent Respondents agreed and
2 percent Respondents strongly agreed that organizations used their manpower to the best
by placing right person at right place and at right time. Whereas 31 percent Respondents
disagreed that, there existed hardly any proper utilization of the manpower (Chart IV.
13).
that their organizations did not paid attention towards cost reduction (Chart IV. 13).
In response to a question your organization is able to attract the best talent from 186
agreed that their organizations were able to attract best talent available in the market.
181
In response to a question employees are provided guidance and given training from 186
agreed that in their organizations they were guided and provided with knowledge to work
in new areas .Whereas 17 percent Respondents disagreed that hardly any emphasis was
strongly agreed that they were assigned job profiles and designations appropriately.
Whereas, 2 percent Respondents disagreed that they were not clear about their job
profiles and their designations and 1 percent Respondents remained neutral on this aspect
employees competencies and skills. Whereas 9 percent Respondents disagreed that, their
Whereas 11 percent Respondents disagreed that, their organizations hardly paid any
182
In response to a question better performance is facilitated by rewarding employees from
disagreed that hardly any emphasis was made on reward based performance by their
In response to a question recognition, rewards are as per merit and on long-term basis
strongly agreed that their organizations gave recognition and reward as per merit.
In response to a question all groups of the workforce are equally managed (age, gender,
race, religion etc)from 186 Respondents, 69 percent Respondents agreed and 16 percent
Respondents strongly agreed that in their organizations all different groups were
organizations paid attention towards managing diversity with respect to age, gender, race
In response to a question processes like hiring, training have been outsourced from 186
agreed that their organizations had outsourced services. Whereas 3 percent Respondents
disagreed that hardly any services were outsourced (Chart IV. 13).
183
Respondent responses were further corroborated with the observations. Banks viewed
staffing needs. Public Sector Banks manpower planning focused mainly on the number of
staff members and employees who would be required in the middle management. These
manpower planning were mostly quantitative in nature and determined number of staff
members that Banks would required to recruit for the next few years.
to manage changes in the market conditions and to keep inventory of skilled personnel to
be utilized for the emerging job requirements. On the basis of revised requirements, Bank
of Baroda and Punjab National Bank recognized the requirement of two Executive
Directors to handle operations of Banks, as these two Banks were very large Banks. For
the purpose of manpower planning Banks had taken help of technology. For instance, State
Bank of India being one of the largest Bank in India has developed Human Resources
Management System also known as SBI HRMS Portal, which helped in doing resource
planning effectively and also reduced the cost factors related to manpower.
A decade back Banks faced a lot of Human Resource wastage due to the disparities
between the demand and supply of manpower. Today Banks are making efforts to
overcome these challenges by preparing details such as: surplus personnel existing in one
unit; same skilled personnel again employed in another unit without any redeployment of
surplus employee; and over employment resulting into assigning of work to workers below
their abilities and capacities leading towards wastage. Mostly Private and Foreign Banks
has well prepared Human Resource budget. As a result, their business per employees was
184
Public Sector Banks recruited mostly staff, for which they advertised in the local and
national newspapers and conducted written test, group interviews for selecting candidates.
Banks are also fulfilling the requirements internally by reassignment, re-allocation of the
responsibilities and even internal promotions for their internal candidates. Public Sector
Banks like State Bank of India, Punjab National Bank, Bank of Baroda, Allahabad Bank,
UCO Bank and Canara Bank recruit employees at following levels: Clerks, Junior
Management Grade Scale I, Middle Management Grade Scale II, Middle Management
Grade Scale III, Senior Management Grade Scale IV and Top Executive Grade Scale-
V. For these Banks, Banking Services Recruitment Board (BSRB) invite applications for
various posts like - clerks, typist and agriculture clerks and many other for the respective
regions.
Banks like ING Vysya Bank, Deutsche Bank, Barclays Bank and Kotak Mahindra Bank
identified and cultivated strategic talent pools from various resources like universities,
management schools, and community forums. Business Head, Human Resource Head, or
Chief Executive Officer approves recruitment activities in these Banks. Expenditures were
budgeted and pre-approved by Business Unit Heads and Human Resource Heads. One of
the Respondents from HDFC Bank mentioned that to end bulk recruitment they followed
pool; and banking on external network by using job portal, direct sourcing, Bank website,
placement agencies, job fairs, print media, and campus hiring. Innovative Human Resource
recruitment processes aided by the latest technology backed all these programmes.
185
Banks constituted a huge number of job profiles, which has different responsibilities
associated with them. Different job profiles existed were: customer service, front desk,
cash handling, probationary officer, loan officer, personal loan officer, home loan officer,
home loan agent, loan manager, loan processing officer, accountant, product marketing and
sales executive, recovery officer, retail asset manager, property appraiser, customer service
executive and many others. For instance, job profile of Loan Officer in Canara Bank
includes checking the eligibility of the individuals seeking loans from the Bank. Evaluation
of loan application and probability of loan repayment by customer verified. After this loan
different products and services offered by their Bank. Relationship Representatives were
responsible for opening and closing accounts and keeping a record of all the financial
management tools, database and prepared appropriate risk metrics and reports. They were
Skill up-gradation is an important area for Banks. SBI Bank has Strategic Training Unit
once in 18 to 24 months. This training unit also provided training programmes to other
Public Sector Banks and some Foreign Banks on their request on cost-to-cost basis 11.
186
Union Bank of India has Staff College situated at Bangalore, and seven centers in various
parts of the country. The staff college organized training programmes for various
Marketing, and Human Resource Development. Union Bank of India also conducted
the areas of software -project management, service edge - improving service quality etc. A
new trend has emerged amongst Banking Organizations to groom candidates in specialist
areas from the beginning for tomorrow. Canara Bank used interventions like SPANDAN
for bringing attitudinal change among their front line staff, programme named
PRATIBHA for grooming in-house talent in varied specialized areas and executive
ICICI Bank conducted a Probationary Officer programme for graduate students to pursue
their career in Banking through one year intensive residential classroom training and
internship programme. This programme also helped Bank to develop specialists with
Banking knowledge and skills in the areas like- corporate banking, private banking, risk
Bank of India named Institute for Development and Research in Banking Technology
(IDRBT) provided facility of training to both Public and Private Sectors Banks in the areas
such as networking technology, payment system, security technology, cyber crime, data
187
Chinatrust Commercial Bank provided training to their staff for supervisory roles in
different fields. The supervisory skill training programme included people management,
developing service orientation; focusing on the customers needs ; collaborating with the
client ; awareness about customers satisfaction ; skills to seek information about the real
environment .
Performance Assessment Reports and its contents to be shared with the officer
concerned12. There also existed a provision in this report that if any employee does not
agree with the appraisal grading then they are free to raise their comments against the final
grading, but within a stipulated period of receiving the report. Mostly Banks carried
appraisal processes once in a year. But, there also existed few Banks like ICICI Bank in
which performance appraisal was carried out twice a year and on the other hand, HDFC
Bank does it regularly with the help of Management Information System with which
performance was calculated and monitored across the regions and branches. Centurion
Bank of Punjab has online appraisal system used for conducting performance appraisals
188
The appraisal report constituted of appropriate list of objectives, which could clearly
demonstrate the performance of an employee. For instance, State Bank of India appraisal
form consisted of two parts. Part A consisted of details regarding employees duties and
employees capabilities in different areas required for the current role requirements (Scale:
appraises career direction options and wishes, and readiness for promotion. It also
constituted of key responsibility areas considered such as: loan disbursement, bad loan
recovery, fee-based income, and the number of new account added were used for
Private Sector and Foreign Sector Banks has given competition to Public Sector Banks as
they offered much more attractive pay components. Public Sector Banks followed an
of India, Ministry of Finance, New Delhi 14. Salaries offered by Private and Foreign Banks
included a significant variable component linked to performance and this resulted into
salary differential as high as 200 to 400 per cent. Government fixes the salaries for Public
Sector Bank chiefs. Private Banks needed a clearance from Reserve Bank of India for
189
The compensation packages and bonuses of Chief Executive Officers, of Private and
Foreign Banks were too high. For instance, Chanda Kochhar, Managing Director (MD)
and Chief Executive Officer of ICICI Bank was offered salary between Rs. 84 lakh and Rs.
1.62 crore annually; Aditya Puri, Managing Director and Chief Executive Officer of HDFC
Bank received basic pay ranging between Rs. 1.08-1.32 crore; Shikha Sharma, Managing
Director and Chief Executive Officer of Axis Bank, was offered a basic pay of Rs. 1.25
crore 15. In contrast to Chief Executive Officers of Public Sector Banks like State Bank of
India Chief O.P Bhatt was paid salary of Rs. 26.51 lakh. Recently during the period of
recession, Reserve Bank of India had proposed to limit the annual salary hikes of Chief
Executive Officers or whole time directors of Private Banks to 10-15 percent as the fact
that higher salaries and bonuses of bankers was blamed for the 2008 global financial
meltdown.
Apart from remunerations, promotion policies are also essential for employees motivation.
Promotions in Private Sector Banks were performance based and the pace of employees
16
advancing in these organizations was faster as compared to Public Sector Banks .
However, even Public Sector Banks like Union Bank of India, Mumbai based branch
decided to put in place a fast track promotion policy up to the rank of Assistant General
Manager (AGM) to ensure that senior executives had a sufficient tenure with the Bank. For
instance, newly recruited officers used to become Assistant General Manager in 20 years,
but with the help of fast track promotions employees could become Assistant General
Manager within 11 years. These fast track promotion processes also acted as an
190
Banks had adopted policy measures to achieve greater participation from women
organizations had gender sensitive work culture and relatively unrestricted environment
with flexible timings. For instance, following Banks showed impressive malefemale
ratios employed in their organizations: HSBC Bank male-female gender ratio was
64.5:35.5 in India out of which 50 percent of the top managers were women. HSBC Bank
has also set up a task force of 100 employees consisting largely of women business heads,
to pursue gender diversity 18; ICICI Bank has 70:30 male-female ratios; Axis Bank claimed
that in metro branches, there ratio was even higher at 40 percent; Standard Chartered Bank
male-female ratio of employees in India was 69:31. Private and Foreign Banks were ahead
19
of Public Sector Banks with a healthy ratio of 30 percent . On the other hand Public
Sector Banks provided job reservations to scheduled castes, scheduled tribes, other
Banking Industry had experienced the need of infusion of some developmental services
from outside to augment the internal knowledge capacities. Banks had adopted outsourcing
strategies due to the following reasons- it helps in cost reduction through process
improvement and control; it helps Banks to concentrate on its core business areas instead
of back office operations; it helps to make services flexible to meet the changing
customers requirements. For instance, IndusInd Bank has entered into an infrastructure-
recovery systems. This partnership also supported Banks goal to become totally customer-
centric by providing more secure, responsive, and efficient services. It also allowed Bank
191
CHART IV. 14
HUMAN RESOURCE STRATEGIES IN BANKS
4%
65%
Manpower Planning 0%
31%
0%
16%
72%
Cost Controlling of Manpower 0%
13%
0%
21%
62%
Talent Acquisition 0%
17%
0%
10%
73%
Deployment 0%
17%
0%
44%
53%
Job Profile and Designation 1%
2%
0%
42%
48%
Skill up-gradation 1%
9%
0%
19%
70%
Appraisal of Emplyoees 0%
11%
0%
34%
58%
Compensation Realignment 0%
6%
2%
16%
67%
Promotion Policies 0%
17%
0%
16%
69%
Managing Workforce Diversity 0%
15%
0%
44%
53%
Outsourcing 0%
3%
0%
192
Customer retention was emphasized repeatedly to employees, because without customers
an organization would not have any revenues, profits, and consequently no market value.
employees to select the right kind of customer. As it could not, be desirable or even
possible to create relationship with all customers. To learn to build relationship with
customers employees need to accurately identify changing customer needs and develop
new complex products to satisfy their needs and to provide higher levels of customer
services. Thus, product innovation has emerged as a significant feature to meet needs of
customers.
A greater use of Human Resource Practices was associated with the higher level of
productivity and excellent services. Quality services in Banks referred to as right service at
the first time. Apart from quality services, Banking Organizations need to provide
be as per customers handiness. Ultimately, all these strategies helped to achieve customer
questioned on these.
percent Respondents agreed and 26 percent Respondents strongly agreed that they
considered each customer as valuable and paid attention towards relationship building.
Whereas 9 percent Respondents disagreed that, their organizations were not vigilant on
193
In response to a question customers need gaps are closed by continuous new product
customers needs .Whereas 1 percent Respondents disagree that hardly any new product
In response to a question customer-service procedures have changed in the past from 186
agreed that their organizations emphasized towards good services for customers. Whereas,
4 percent Respondents disagreed that no emphasis was given towards quality of services
Respondents strongly agreed that their organizations developed handy service processes.
provided to their customers and 1 percent Respondents remained neutral on this aspect
organizations needed to develop new products so as to fulfil the customers need gap. For
instance, SBI Bank conducted programme in 2007, named Parivartan for all levels of
employees to change their mind set and to improve their communication skills.
194
In 2009, Bank launched another programme; Citizen SBI aimed at attitudinal change and
Bank of India conducted Customer Day in all their branches on 15th of every month
education was the key tool adopted by Banks. Towards this end, Bank had come out with a
Citizens Charter in September 1997. Citizens Charter encompassed most of the Bank
operations. This has been prepared to promote fair Banking practices and to give
Union Bank of India, HDFC Bank, ICICI Bank, Axis Bank and many other Banks have
provided call centre services to their customers. In these call centres, customers could
record complaints and deficiencies in the services provided to them by Bank. Banks had
also enabled online grievance redressal mechanism whereby grievances could be lodged
online for speedy redressal of any complaint. In addition to these Banking Codes and
Standard Board of India (BCSBI) had set minimum standards to be practised by Banks
while dealing with individual customers. These standards provided protection to customers
and explained to Banks how to deal with customers for their day-to-day operations. Banks
provided clear information about their products and services and details about the terms
and conditions like interest rates or any service charges. In order to make exchange of
195
The customer-oriented strategies helped Banks to retain customers and improve quality of
customers to lower cost automated channels, such as Automated Teller Machines and
CHART IV. 14
CUSTOMER RETENTION STRATEGIES BY BANKS
65%
58%
55%
44%
35%
26%
11%
9% 8% 9%
5%
0% 0% 0%1%0% 0% 0% 1%
196
Cross-cultural Differences Influencing Human Resource Strategy Formulation and
Implementation
changes. Human Resource Strategies must be aligned with the cultural differences because
Respondents disagreed and 2 percent Respondents strongly disagreed that hardly any
cultural differences were included in the Human Resource Strategies, and 6 percent
Respondents remained neutral on this aspect (Chart IV. 15). Even during various seminars
and summits Human Resource practitioners and key Banking, personnels has mentioned
that organizations need to take seriously into account the cultural differences.
197
CHART IV. 15
HR STRATEGY CONSIDER CULTURAL DIFFERENCES
Human Resource Strategies
60% 56%
50%
40%
30%
20%
20% 15%
10% 6%
2%
0%
Strongly Disagree Neutral Agree Strongly
Disagree Agree
organization to deal with people who differ dramatically in terms of ethnicity, race, gender,
physical ability and sexual orientations. The management of cultural diversity has become
a significant issue for Banking Industry due to workforce diversity. Following six cultural
differences, factors were identified that would play an important role in the formulation of
Second, is time orientation refers to the different attitudes towards time (past, present and
future), reflected by the notions that how employees prioritized their task. It also reflects
how employees co-ordinated, planned and organised. Time orientation framed would
decide for employees, in which sequence the task in the organization has to be completed.
Thus, organizational and individual time orientation needs to be matched for better
198
performance. Third, control process refers to how people to be treated 21. It is essential that
employees, according to their cultural backgrounds. Fourth, formality refers to how the
exchange of information took place. Fifth, there should be both upward and downward
Sixth, differences existing among workforce with respect to identity. This refers to whether
22
employees identified themselves with their organizations . Signifying that in
organization individual must view themselves with organizations. To get insight on cross-
strongly agreed that their opinions were accepted liberally in their organizations.
Whereas, 13 percent Respondents disagreed that hardly any attention was paid towards
employees opinions and 1 percent remained neutral on this aspect (Chart IV. 16).
and 41 percent Respondents strongly agreed that they completed their tasks within the
stipulated time period assigned to them. Whereas 11 percent Respondents disagreed that,
hardly any importance was given towards completion of task on time by their
199
In response to a question your organization have a well defined structure for decision-
making from 186 Respondents, 81 percent Respondents agreed and 8 percent strongly
agreed that the way they were controlled in their organization was acceptable to them.
Whereas, 9 percent Respondents disagreed that they did not liked the way employees
were commanded and 2 percent Respondents remained neutral on this aspect (Chart IV.
16).
In response to a question managers and co-workers provide mutual support from 186
percent Respondents strongly disagreed that communication flow was strictly within the
strongly agreed that they could communicate openly. Whereas, 15 percent Respondents
disagreed and 2 percent strongly disagreed that they were hardly allowed to express
In response to a question there exist shared purpose among employees from 186
agreed that they identified themselves with their organizations. Whereas, 11 percent
Respondents disagreed that they did not viewed themselves associated with the
organization and 2 percent Respondents remained neutral on this aspect (Chart IV. 16).
200
Respondent responses were further corroborated by the following observations:
performance. Time emphasis might differ from Public Sector to Private Sector to Foreign
Sector Banks. Even in few advertisements Banks had shown emphasis on time for their
organizations. It was recognized that top leadership of organizations clearly determined the
time orientation for the organization as a whole, so that the decision-making and assigned
which gave rise to conflict, was the ways in which employees were controlled. Mostly in
Private and Foreign Sector Banks and in few Public Sector Banks, Bank Managers were
visible to their employees, for example by walking and gathering information. However,
managers who commanded too obviously or involved themselves in the work details of
employees might de-motivate employees who take pride and honour in their work.
In Bank branches, employees used English language for business purpose, but not all
employees communicated in Hindi or even in their local languages in their offices, this was
specifically observed in Public Sector Banks and in few Private Sector Banks. Free ways
computer mediated communication processes. Almost all Public, Private and Foreign
201
Heads at HSBC India, communicate with their employees through blogs and town hall
meetings and talked about business performances face-to-face with employees. Human
process; training and development; and compensation packages etc. Banks emphasise on
CHART IV. 16
CROSS CULTURAL DIFFERENCES VARIABLES IN BANKS
10%
77%
Identity 2%
11%
0%
0%
53%
Formality 0%
45%
2%
18%
63%
Communication 1%
15%
2%
8%
81%
Control 2%
9%
0%
41%
48%
Time Orientation 0%
11%
0%
9%
77%
Opinion of Emplyoees 1%
13%
0%
202
Strategy Implementation and Organizational Culture
The major challenge for organizations existed with respect to the implementation rather
individuals must be willing to work toward goals that not only allowed them to meet their
own needs but, in doing so, organizational objectives were also achieved.
In response to a question there exists well integrated strategies within the organization
strongly agreed that their individual needs and organizational requirements were well
integrated. Whereas, 9 percent disagreed that hardly any emphasis was made on
Banks need to implement various Human Resource Strategies such as: acquiring talent
which could identify key growth opportunities and design strategy and business plans for
growth areas; developing strategy for enhancing performance in key products and
enhancement of credit and risk management processes; developing strategies for people
during merger and post merger better organizations integration; and evolving strategies to
203
CHART IV. 17
STRATEGY IMPLEMENTATION IN BANKS
Integration
90% 80%
80%
70%
60%
50%
40%
30%
20% 9% 8%
10% 0% 3%
0%
Strongly Disagree Neutral Agree Strongly
Disagree Agree
Organization culture is acquired with the period and passed on to new employees through
the process of socialization and this influence the behaviour of employee. In turn,
embedded. For the purpose of the Study, following key components needed to be
considered as part of organization culture for better strategy implementation such as:
like dress and appearance, language, values and norms, relationships and work habits
204
Employees perception, expectation, and behaviour likely to be different and because of
this, employees approach towards resolving and applying solutions are different. Thus,
23
organizations emphasize on employee empowerment . In order to avoid situations of
conflicts employees must know duties they have to perform and about decisions related to
Employees need to be supported to remain innovative in order to promote them new ideas.
For this reason, the embedding of organization culture through mentoring considered as an
skill and knowledge. The mentor-protege relationships at workplaces speed up the rate of
learning more easily as compared to the mere advices obtained from supervisors
relationship oriented. Apart from these organizations needed to practice equal opportunity
Respondents strongly agreed that in their organization cultural differences existed across
Respondents strongly disagreed that hardly any cultural differences existed in their
organization and 4 percent Respondents remained neutral on this aspect (Chart IV. 18).
205
In response to a question, employee viewpoints influence organizational culture from 186
disagreed that employees viewpoints were not considered and 2 percent Respondents
In response to a question every employee is accountable for their decisions and actions
strongly agreed that in their organizations employees were accountable for the decisions
In response to a question new business ideas are well accepted from 186 Respondents, 66
percent Respondents agreed and 11 percent Respondents strongly agreed that in their
organizations they were promoted to give new ideas .Whereas, 22 percent Respondents
percent Respondents disagreed that hardly they were provided with mentors at the
workplace and 1 percent Respondents remained neutral on this aspect (Chart IV. 18).
206
In response to a question employees are given equal opportunities from 186 Respondents,
67 percent Respondents agreed and 16 percent Respondents strongly agreed that they
were provided with equal opportunities .Whereas, 17 percent Respondents disagreed that
their organization did not practised equal opportunities practice (Chart IV. 18).
Recently, HDFC acquired Centurion Bank and their Human Resource Head tried to
played a major role emphasizing that organization culture should not be a left out aspect 24.
easier way and avoided conflicts between managers and employees. Most of the Banks
provided training to their employees on the responsibilities they have to handle and each
Banking Industry has slowly agreed on the power of openness and innovation, of not just
product and service but also of processes, to exploit opportunities and to manage the risks
achieve and to sustain. It has been observed that those Banks, which supported innovation
for introduction of a new product, opening of a new markets for their products and
services, implementation of new processes and new organization structure has performed
better.
Few Private and Foreign Banks provided mentors to their new employees to help them
navigate the organization and familiarize themselves with history, values, practices, and
policies. Banks are also using mentoring to foster culture of learning organization towards
207
Banks recognized that workforce with the composition of the local communities and
respond to the needs of their customers locally even better. Hence, every Banks top
Almost all Bank have specified codes of conduct in order to avoid conflicts with
related information, strategies, research in connection with the Bank, legal, and technical
data to be kept as confidential information and used for Banks business purposes only;
regarding employees to proceed on deputation to other branches at short notice; Bank may
at its discretion fix business hours at all branches/offices depending upon its business
needs and requirements; Bank may at its discretion utilize the services of their staff .
CHART IV. 18
CULTURAL VARIABLE INFLUENCING IMPLEMENTATION OF HR
STRATEGY
208
Human Resource Strategy and Business Ethics
represents a set of social values. These values could best be tabulated through appropriate
Human Resource Strategy in which such values may represent ethical behaviour of the
organization towards its employees. In this way, a relationship between Human Resource
Strategy and Business Ethics could be understood. To measure Human Resource Strategy
with respect to Business Ethics it was measured by knowing Human Resource Strategies
agreed that employees and customers had trusted organizational practices. Whereas, 6
percent Respondents disagreed that hardly they trusted organizational practices and 2
CHART IV. 19
HR STRATEGIES TRUSTWORTHINESS IN BANKS
Trustworthiness
60%
49%
50% 42%
40%
30%
20%
10% 6%
0% 2%
0%
Strongly Disagree Neutral Agree Strongly
Disagree Agree
209
For the purpose of the Study some ethical considerations has been taken in the research
process such as: true information sharing for organizations was essential to build trust in
its practices. Deceptions about organization conditions would result into lower value for
the organization; consistency in saying and doing helps to build importance for policies
and procedures; equality at work with relation to men and women and caste system to be
a modern and productive organizations, which means respect for the social and cultural
relationship between individual and organization working towards the same objectives; and
In response to a question your organization allow sharing of factual information from 186
agreed that records and information communicated to employees was reliable. Whereas, 3
percent Respondents disagreed that information communicated was not true and 1
disagreed that hardly their organization practised equality and 2 percent Respondents
210
In response to a question employees are treated respectfully from 186 Respondents, 69
percent Respondents agreed and 18 percent Respondents strongly agreed that they were
organization employees were not treated courteously and 2 percent Respondents remained
In response to a question there exists consistency between saying and doing in your
percent Respondents agreed that in their organizations consistency between saying and
doing existed . Whereas 6 percent Respondents disagreed that, hardly any consistency
In response to a question employees are scrutinized against parameters other than their
Respondents strongly agreed that they were scrutinized on the parameters that they were
organization was concerned about the matters related to employee privacy and 8 percent
In response to a question employees initiate and actively participate in social causes from
agreed that they took initiatives actively and contributing for various causes. Whereas, 13
percent Respondents disagreed that hardly they need to volunteer for any causes as it was
not asked by their organization and 2 percent Respondents remained neutral on this aspect
211
In response to a question your organization undertake social responsibility from 186
strongly agreed that their organizations took up social responsibility causes (Chart IV.
20).
Banks ensured and promoted for societal causes. For instance, HSBC Banks programme
named Catalyst and HDFC Bank programme named Corporate Volunteering Program
encouraged their employees to volunteer time and skills for causes like to celebrate
festivals with the underprivileged or employees seeking donations for various natural
disasters. Banks also conduct programmes to support community initiatives such as:
support classes, reading classes, providing skills training to school dropouts, youth, women
and other disadvantaged groups. Punjab National Bank organized free medical, eye and
general check-up camps, camps to distribute artificial limbs, blood donation camps. Punjab
National Bank has taken keen interest in nurturing sports towards this end, PNB Hockey
Academy was established which provided training to young players who represented
country at various national and international level hockey tournaments. Hence, employees
must be motivated to participate in these programmes, which could be fruitful for the
society.
Human Resource professionals of various Banks have taken following steps to overcome
the dilemmas in relation to ethical practices like providing written standards of workplace
212
CHART IV. 20
BUSINESS ETHICS IN BANKS
63%
37%
Social Responsibility 0%
0%
0%
27%
58%
Employees Volunteering 2%
13%
0%
19%
47%
Privacy 8%
26%
0%
54%
Consistency in Saying 40%
0%
and Doing 6%
0%
18%
69%
Respect of employees 2%
11%
0%
28%
66%
Equality 2%
4%
0%
38%
58%
True Information Shared 1%
3%
0%
On the basis of Data Analysis, this part of the Chapter discussed the effectiveness of
Human Resource Practices in Sample Banking Organizations. Further, in the next part,
additional statistical analysis is undertaken for further enhancing the understanding of the
research objectives.
213
Hypothesis Testing
accepted or not. The approach to analysis is sequential, ranging from bivariate analysis
Bivariate Analysis:
Cross-tab with Chi square: Our research problem requires us to compare variables with
each other hence; we have represented our collected data into a cross-tab. A cross tab is
also called contingency table or a pivot. The most critical objective while testing a
hypothesis was to identify relationships between variables, as our ultimate aim was to
describe how the values of one variable vary according to the values of another variable. A
key challenge in doing this was collecting data from a Sample whereas the inferences that
we wanted to draw were for a larger population. In addition, there could be other random
factors causing diffusion in results. Through Chi-square analysis, we could control this
diffusion i.e., if the differences between our model and reality were small, our
understanding was good. Further, a significant value of Chi-square does not indicate that
there is necessarily a strong relationship in the population, it just indicates that there is
some relationship i.e., different from what would be expected based on chance alone.
Hence, Chi-square confirms that theres an association, but does not signify causality.
214
Pearson Correlation: Correlation is a measure of the relation between two or more
variables. Correlation coefficients range from -1.00 to +1.00. The value of -1.00 represents
Multivariate Analysis:
using Regression analysis. The R-square value signifies the variation in dependent
H0: There is no relationship between change and Banking Organizations response to it.
The null hypothesis states that there exists no relationship between change and Banking
Organizations response to it. The Banks response is the dependent variable in this
relationship as it is the outcome. Banks responsiveness was measured by values that were
captured as adaptability.
215
Change is a complex phenomenon, hence to capture all perspectives it has been
decomposed into following three variables: change in product portfolio; process changes in
Cross-tab with Chi-square test was applied to find association between the variables. The
output (Table IV. 1) showed that there exists a significant association between
test reads a significance level of less than < 0.1. This can be interpreted that we are 90
percent confident that the interval contains the true population mean. We can also say that
90 percent of all confidence intervals formed in this manner (from different samples of the
population) will include the true population mean (Table IV. 2).
0.1 is the error or mistake that may happen by chance. Since the value of probability was
less than 0.1 for all three independent variables, we may conclude that there has been an
association between adaptability and change. Hence, we rejected the null hypothesis
H0: There is no relationship between change and Banking Organizations response to it.
216
TABLE IV. 1
CROSSTAB BETWEEN CHANGE AND BANKS ADAPTABILITY
Adaptability
Total
Strongly
Disagree Neutral Agree
Agree
Disagree 6 0 0 0 6
Change in
Product Agree 7 3 65 21 96
Portfolio
Strongly Agree 3 0 24 57 84
Total 16 3 89 78 186
Total 16 3 89 78 186
Disagree 3 0 0 0 3
Organizations
Response to Agree 12 0 46 1 59
Customer Needs
Strongly Agree 1 3 43 77 124
Total 16 3 89 78 186
TABLE IV. 2
CHI-SQUARE VALUES FOR CHANGE
Asymp. Sig.
Value Df
(2-sided)
Change in Product Portfolio Pearson 102.017 6 0.000
Chi-
Process Changes in Banks square 147.402 3 0.000
Organizations Response to
106.237 6 0.000
Customer Needs
217
Step d: Correlation analysis
Chi-square test cannot determine the causality. Hence, correlation analysis was employed
to determine cause and effect relationship. For one-to-one correlation all values in the
correlation table were standardized ranging from -1 to+1, all variables were highly
correlated (Table IV. 3). There existed positive significant correlation between
and organizations responding to customer needs(0.624). This means that the chosen
three variables were fairly independent of each other and were strongly correlated with
Banks adaptability to change. This supports our Research Hypothesis that Banking
Organizations are responsive to change. Therefore, from the overall results we could
conclude that Banks are responsive towards changes in product, process, and customer
preferences.
TABLE IV. 3
RELATIONSHIP BETWEEN CHANGE AND BANKS ADAPTABILITY
Adaptability
Pearson Correlation 1
Adaptability Sig. (2-tailed)
N 186
Pearson Correlation 0.561**
Change in Product
Sig. (2-tailed) 0.000
Portfolio
N 186
Pearson Correlation 0.703**
Process Changes in
Sig. (2-tailed) 0.000
Banks
N 186
Pearson Correlation 0.624**
Organizations Response to
Sig. (2-tailed) 0.000
Customer Needs
N 186
** Correlation significant at the 0.01 level (2-tailed).
218
Step e: Developing a model
organizations response towards change, multiple regression analysis was used. R-square
value for the model was 0.648 this was the amount of variance in the predicted variable
that was explained by independent variables: change in product portfolio, process changes
Hence, adaptability is predicted to: increase 0.372 when the change in product portfolio
goes up by one; increase by 0.662 when process changes in banks goes up by one;
increase by 0.518 when organizations responding to customer needs goes up by one ;and
As is evident from the model that process changes in banks has the most effect on the
219
TABLE IV. 4
BACKWARD REGRESSION ANALYSIS FOR ADAPTABILITY
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
B Std. Error Beta
The above Model through regression analysis has helped in explicating the Research
Hypothesis. We now have a quantitative model for the relationship between adaptability
and change. This model could be used to optimize this relationship. Thus, this confirms
that Banking Organizations are responsive to change. Even during the interaction with
Bank employees, they specified that Banks had changed the process for application of a
personnel loan into an easy and simple procedure. Personnel loan process constituted
mainly three things: producing of proper documents; filling up of application form; and
paying for the initial down payment. They also specified that this process might fail if
customers were asked to produce many documents along with the forms some of which
220
Thus, it is necessary that customers should be asked for the minimum but most necessary
form must be in a language, easily understood by the customers and it should not be very
lengthy eliciting a lot of unnecessary information. Thus, considering these aspects Banks
changed their processes to make Bank processes simpler and also modified their products
The above empirical findings were further supported by findings of the Researchers like
26
Shanmugam and Das ; and Prasad and Ghosh 27, who pointed towards improvement in
the performances of the Banking Sector due to its adaptability towards changes.
28
Avermatete, Viaene, Morgan, and Crawford stressed on the importance of change in
products and processes of the organization in order to move the organization to exploit new
markets. Leeladhar 29 supported that Indian Banks had adapted to the changes, specifically
changes in the Banks processes like using of electronic transmission of payments and
Kumar30; and Verma, and Chaudhuri 31 in their studies mentioned that due to the existence
of competitive landscape in Banking Sector most of the Public Sector Banks were in the
process of adopting strategies, which could provide them competitive edge. Thus, this
finally proves Research Hypothesis that Banking Organizations are responsive towards
changes.
221
Research Hypothesis 2: The Nature of Change in Banking Organization is Strategic.
The null hypothesis states that the nature of change in Banking Organization is not
outcome. This was measured by values that were captured as predictability. Nature of
change is a complex phenomenon, hence to better capture all perspectives it has been
Cross-tab with Chi-square test was applied to find association between the two variables.
The output (Table IV. 5) showed that there existed a significant association between
Chi-square test reads a significance level of less than < 0.1. This can be interpreted, that we
are 90 percent confident that the interval contains the true population mean. We can also
say that 90 percent of all confidence intervals formed in this manner (from different
samples of the population) will include the true population mean. (Table IV. 6).
222
0.1 is the error or mistake that may happen by chance. Since the value of probability was
less than 0.1 for all four independent variables, we may conclude that there has been an
association between being strategic and nature of change. Hence, we rejected the null
TABLE IV. 5
CROSSTAB BETWEEN NATURE OF CHANGE AND PREDICTABILITY
Predictability
Total
Agree Strongly Agree
Agree 93 0 93
Change Management
Strongly Agree 45 48 93
Disagree 13 2 15
Strongly Agree 0 29 29
223
TABLE IV. 6
CHI-SQUARE VALUES FOR IMPLEMENTATION OF CHANGE IN BANKS
Asymp. Sig.
Value df
(2-sided)
Significance of Change 139.044 1 0.000
Pearson
Chi-
Change as a Process 65.992 1 0.000
square
Change Management 64.696 1 0.000
Chi-square cannot determine the causality. Hence, correlation analysis was employed to
determine cause and effect relationship. For one-to-one correlation all values in the
correlation table were standardized ranging from -1 to +1, all variables were highly
correlated (Table IV. 7). There existed positive significant correlation between
change management (0.590) and change as continuous (0.449). This means that the
chosen four variables were fairly independent of each other and were strongly correlated
with Banks predictability of change. This supports our Research Hypothesis that Banking
Organizations nature of change is strategic. Therefore, from the overall results we could
224
TABLE IV. 7
RELATIONSHIP BETWEEN NATURE OF CHANGE AND PREDICTABILITY
Predictability
Pearson Correlation 1
N 186
N 186
N 186
N 186
N 186
** Correlation significant at the 0.01 level (2-tailed).
* Correlation significant at the 0.05 level (2-tailed).
225
Step e: Developing a model
To determine the quantum by which the independent variables, optimally predicted nature
of change, multiple regression analysis was used. R-square value for the model was 0.793
this was the amount of variance in the predicted variable thats being explained by
by one; decreases by 0.017 when change as a process goes up by one; increase by 0.176
continuous goes up by one ;and be 0.046 when all four independent variables are zero.
As is evident from the model that significance of change has the most effect on the
continuous. The variable change as a process has a relatively small albeit negative effect
on predictability.
226
TABLE IV. 8
BACKWARD REGRESSION ANALYSIS FOR PREDICTABILITY
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
Std.
B Beta
Error
(Constant) 0.046 0.056 0.833 0.406
The above Model through regression analysis has helped in explicating the Research
Hypothesis. We now have a quantitative model for the relationship between being
strategic and nature of change. This model could be used to optimize this relationship.
Thus, this confirms that Banking Organizations has a strategic approach towards change.
The literature review on Banking Industry confirmed that this industry has performed well
in order to cope change. The subject literature showed that the customers status has
an active customer. As Banks faced challenges from both the fronts domestic and
international thus, Banks needed to predict changes and taken actions to overcome these
challenges.
227
The above empirical findings were supported by the studies of the following Researchers
as : Tyson 32 confirmed that being strategic means description of future action which were
33
always directed towards change ; Quinn emphasized on the strategic change as a
necessity for an organization; Truss and Gratton 34 mentioned there existed the requirement
predict the corporate world in the evolving and changing environment; Nadler 35 suggested
maintenance and after the transition; and an empirical study by Nath , Mukherjee and Pal 36
on Indian Nationalized Banks revealed that Banks, in order to survive must adapt to the
changing environment and position themselves with respect to their strategic groups to
improve their perceived service quality . Even their performance metrics need to be
grouped strategically.
37
Apart from the above Researcher, Pettigrew and Whipp issued warning to financial
services on the basis of their research that the implementation of change must be
cumulative and stressed that employees responsible for the process of change need to make
continual assessments, repeated choices and multiple adjustments. Thus, this finally proves
the Research Hypothesis that the nature of change in Banking Organization is strategic.
228
Research Hypothesis 3: There is a Correlation between Strategic Intent and
Performance.
The null hypothesis states that there exists no relationship between strategic intent and
better capture all perspectives it has been decomposed into following six variables: vision;
mission; values and principles; goals; strategic objectives; and financial objectives.
Cross-tab with Chi-square test was applied to find association between the variables. The
output below (Table IV. 9) showed that there existed a significant association between
performance (dependent variable) and strategic intent (independent variable). The Chi-
square test reads a significance level of less than < 0.1. This can be interpreted as that we
are 90 percent confident that the interval contains the true population mean. We can also
say that 90 percent of all confidence intervals formed in this manner (from different
samples of the population) will include the true population mean (Table IV. 10). 0.1 was
the error or mistake that may happen by chance. Since the value of probability was less
than 0.1 for all six independent variables, we may conclude that there has been association
229
Hence, we rejected the null hypothesis H0: There is no correlation between strategic intent
and performance.
TABLE IV. 9
CROSSTAB BETWEEN STRATEGIC INTENT AND PERFORMANCE OF
BANKS
Performance
Strongly Total
Disagree Agree
Agree
Disagree 3 9 0 12
Neutral 0 3 0 3
Vision
Agree 21 108 20 149
Strongly Agree 2 12 8 22
Total 26 132 28 186
Disagree 19 12 0 31
Mission Agree 7 111 6 124
Strongly Agree 0 9 22 31
Total 26 132 28 186
Disagree 12 7 0 19
Value and
Agree 14 105 15 134
Principles
Strongly Agree 0 20 13 33
Total 26 136 28 186
Disagree 17 11 0 28
Goals Agree 9 105 14 128
Strongly Agree 0 16 14 30
Total 26 132 28 186
Strongly Disagree 2 0 0 2
Disagree 20 28 2 50
Strategic
Neutral 0 0 2 2
Objectives
Agree 4 90 10 104
Strongly Agree 0 14 14 28
Total 26 132 28 186
Financial Disagree 22 20 0 42
Objectives Agree 3 101 15 119
Strongly Agree 1 11 13 25
Total 26 132 28 186
230
TABLE IV. 10
CHI-SQUARE VALUES FOR STRATEGIC INTENT
determine cause and effect relationship. For one-to-one correlation all values in the
correlation table were standardized ranging from -1 to +1, all variables were highly
correlated (Table IV. 11). There existed positive significant correlation between
performance with vision (0.158), mission (0.676), values and principles (0.509),
goals (0.589), strategic objectives (0.540) and financial objectives (0.610). This
means that the chosen six variables were fairly independent of each other and were
correlated with Banks performance. This supports our Research Hypothesis that strategic
intent and performance are correlated. Therefore, from the overall results we could
conclude that vision, mission, values and principles, goals, strategic objectives, and
financial objectives were planned well resulting into better performance of an organization.
231
TABLE IV. 11
RELATIONSHIP BETWEEN STRATEGIC INTENT AND PERFORMANCE OF
BANKS
Performance
Pearson Correlation 1
N 186
N 186
N 186
N 186
N 186
N 186
N 186
** Correlation significant at the 0.01 level (2-tailed).
* Correlation significant at the 0.05 level (2-tailed).
232
Step e: Developing a model
organizations performance, multiple regression analysis was used. R-square value for the
model was 0.582 this was the amount of variance in the predicted variable that was
Hence, performance is predicted to: increase 0.382 when mission goes up by one;
increase by 0.232 when goals goes up by one; increase by 0.228 when financial
objective goes up by one; and be 0.197 when all three independent variables are zero.
As is evident from the model that mission has the most effect on the dependent variable
233
TABLE IV. 12
BACKWARD REGRESSION ANALYSIS FOR PERFORMANCE OF BANKS
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
B Std. Error Beta
The above Model through regression analysis has helped in explicating the Research
strategic intent and performance. This model could be used to optimize this
relationship. Thus, this confirms that strategic intent correlated with performance of
organizations future and it also energize all organizational levels for a collective purpose
38 39 40
was mentioned by Hamel and Prahalad ; Hart ; Hamel and Prahalad . Lovas and
41
Ghoshal mentioned that goals and mission being a part of strategic intent, point out the
long-term market or competitive positions that an organization hopes to build along with
the sense of direction to employees for better performance. Quinn 42; and Burgelman and
43
Grove highlighted that poor performance of an organization was due to the failure in
defining clearly the strategic intent. Thus, this finally proves the Research Hypothesis that
234
Research Hypothesis 4: Organization Change and Human Resource Strategy are
Co-related.
H0: There exists no correlation between organization change and Human Resource
Strategy
The null hypothesis states that there exists no correlation between organizations change
and Human Resource Strategy. Human Resource Strategy is the dependent variable in
this relationship as it is the outcome of organizational changes. Hence, to better capture all
perspectives of organization change it has been decomposed into following six variables:
Cross-tab with Chi-square test was applied to find association between the variables. The
output (Table IV. 13) showed that there existed a significant association between Human
variables). The Chi-square test reads a significance level of less than < 0.1. This can be
interpreted, that we are 90 percent confident that the interval contains the true population
mean. We can also say that 90 percent of all confidence intervals formed in this manner
(from different samples of the population) will include the true population mean (Table IV.
14).
235
0.1 is the error or mistake that may happen by chance. Since the value of probability was
less than 0.1 for all three independent variables, we may conclude that there has been
rejected the null hypothesis H0: There exists no correlation between organization change
TABLE IV. 13
CROSSTAB BETWEEN ORGANIZATION CHANGE AND HUMAN RESOURCE
STRATEGY
Total 16 3 89 78 186
Disagree 10 0 8 7 25
Employee
Neutral 0 3 0 0 3
Expectations
Agree 3 0 81 33 117
Strongly Agree 3 0 0 38 41
Total 16 3 89 78 186
Disagree 14 0 0 0 14
Technology Neutral 0 3 0 0 3
Agree 2 0 87 2 91
Strongly Agree 0 0 2 76 78
Total 16 3 89 78 186
236
Human Resource Strategy
Total
Strongly
Disagree Neutral Agree
Agree
Disagree 7 0 4 2 13
Organizational
Neutral 0 1 2 0 3
Restructure
Agree 9 2 81 40 132
Strongly Agree 0 0 2 36 38
Total 16 3 89 78 186
Strongly
0 0 3 2 5
Disagree
Disagree 12 0 4 5 21
Neutral 0 3 1 3 7
Changes in
Customers
Agree 4 0 81 4 89
Strongly Agree 0 0 0 64 64
Total 16 3 89 78 186
Disagree 6 2 11 5 24
Economic
Neutral 0 0 0 1 1
Conditions
Agree 9 0 62 42 113
Strongly Agree 1 1 16 30 48
Total 16 3 89 78 186
237
TABLE IV. 14
CHI-SQUARE VALUES FOR ORGANIZATION CHANGE
Asymp. Sig.
Value Df
(2-sided)
Workforce Demography 193.448 6 .000
Employee Expectations 283.345 9 .000
Pearson
Technology Chi-square 513.885 9 .000
Organizational Restructure 107.918 9 .000
Changes in Customers 296.092 12 .000
Economic Conditions 31.219 9 .000
Chi-square cannot determine the causality. Hence, correlation analysis was employed to
determine cause and effect relationship. For one-to-one correlation all values in the
correlation table were standardized ranging from -1 to +1, all variables were highly
correlated (Table IV. 15). There existed positive significant correlation between Human
(0.584) and economic condition (0.316) (Table IV. 15). This means that the chosen six
variables were fairly independent of each other and were correlated with Human Resource
Strategies. This supported our Research Hypothesis that Organization change and Human
Resource Strategy are co-related. Therefore, from the overall results we could conclude
restructure, changes in customers and economic condition changes would influence Human
Resource Strategies.
238
TABLE IV. 15
RELATIONSHIP BETWEEN ORGANIZATION CHANGE AND HUMAN
RESOURCE STRATEGY
Pearson Correlation 1
Human Resource
Sig. (2-tailed)
Strategy
N 186
N 186
239
Step e: Developing a model
organizational change variables influencing the Human Resource Strategy for which,
multiple regression analysis was used. R square value for the model was 0.918 this was the
amount of variance in the predicted variable that was explained by independent variables:
Hence, Human Resource Strategy is predicted to: increase 0.069 when the workforce
increase by 0.102 when organizational restructure goes up by one ; and be -0.104 when
As is evident from the model that technology has the most effect on the dependent
workforce demography.
240
TABLE IV. 16
BACKWARD REGRESSION ANALYSIS FOR HUMAN RESOURCE
STRATEGIES
Unstandardized Standardized
Coefficients Coefficients t Sig.
Model
B Std. Error Beta
The above Model through regression analysis has helped in explicating the Research
Resource Strategy and organization change. This model could be used to optimize this
relationship. Thus, this confirms that organization change is co-related with Human
Resource Strategy. These empirical finding were further supported by research studies
44
undertaken by various Researchers. For instance, Dertouzos raised the importance of
Human Resource requirements with respect to the new competencies such as strong
highlighted in their study that Human Resource professionals needed to start development
241
Palthe and Kossek 47 mentioned that the difference between top performing and an average
organization arises due to the kind of strategic initiatives taken towards alignment of
48
Human Resource Strategies with change. Bhattacharjee further discussed in the study
that diversity of workforce had increased in the organizations due to the age gaps and due
to geographical as well racial differences. Hence, the mixed composition of the workforce
needs to work together by accepting each other with different viewpoints. Thus, this proves
the Research Hypothesis that organization change and Human Resource Strategy are co-
related.
H0: There exists no relationship between organizations having Human Resource Strategy
The null hypothesis states that there exists no relationship between Human Resource
Strategy and organizations being people centric. Organization being people centric is the
242
There are numerous Human Resource Strategies, hence to better capture all perspectives it
has been decomposed into following fourteen variables: teamwork; information sharing;
benefit; flexible work arrangements; health and safety; and working conditions .
Cross-tab with Chi-square test was applied to find association between the two variables.
The output (Table IV. 17) showed that there existed a significant association between
organizations being people centric (dependent variable) and Human Resource Strategy
(independent variables). The Chi-square test reads a significance level of less than < 0.1.
This can be interpreted that we are 90 percent confident that the interval contains the true
population mean. We can also say that 90 percent of all confidence intervals formed in this
manner (from different samples of the population) will include the true population mean
0.1 is the error or mistake that may happen by chance. Since the value of probability was
less than 0.1 for all three independent variables, we may conclude that there has been an
association between organizations being people centric and Human Resource Strategy.
Hence, we rejected the null hypothesis H0: There exists no relationship between
243
TABLE IV. 17
CROSSTAB BETWEEN HUMAN RESOURCE STRATEGY AND
ORGANIZATIONS BEING PEOPLE CENTRIC
People Centric
Total
Strongly
Disagree Neutral Agree
Agree
Disagree 0 0 8 0 8
Strongly Agree 0 0 17 20 37
Strongly
3 0 0 0 3
Disagree
Disagree 6 3 13 9 31
Information
Sharing
Agree 5 1 80 31 117
Strongly Agree 1 0 12 22 35
Disagree 3 3 13 5 24
Neutral 0 0 5 3 8
Creativity
Agree 12 1 71 34 118
Strongly Agree 0 0 16 20 36
244
People Centric
Total
Strongly
Disagree Neutral Agree
Agree
Disagree 2 0 15 3 20
Neutral 0 1 2 0 3
Participation
Agree 12 3 78 53 146
Strongly Agree 1 0 10 6 17
Disagree 7 0 23 8 38
Strongly Agree 0 1 11 12 24
Disagree 3 0 9 14 26
Quality of
Agree 12 4 82 19 117
Work-life
Strongly Agree 0 0 14 29 43
Strongly
2 0 0 0 2
Disagree
Disagree 12 0 4 0 16
Workplace
Neutral 0 2 0 0 2
Feedback
Agree 1 2 95 21 119
Strongly Agree 0 0 6 41 47
245
People Centric
Total
Strongly
Disagree Neutral Agree
Agree
Strongly
0 0 1 0 1
Disagree
Disagree 10 1 6 5 22
Employee-
management Neutral 0 2 0 1 3
Cooperation
Agree 3 1 91 13 108
Strongly Agree 2 0 7 43 52
Disagree 8 3 15 3 29
Neutral 0 0 0 1 1
Grievance
Handling
Agree 5 1 73 45 124
Strongly Agree 2 0 17 13 32
Disagree 10 2 17 4 33
Neutral 0 1 1 1 3
Career
Progression
Agree 5 1 86 31 123
Strongly Agree 0 0 1 26 27
Strongly Agree 1 1 7 5 14
246
People Centric
Total
Strongly
Disagree Neutral Agree
Agree
Strongly
1 0 16 11 28
Disagree
Disagree 4 1 28 17 50
Flexible Work
Neutral 1 0 3 0 4
Arrangements
Agree 6 2 45 27 80
Strongly Agree 3 1 13 7 24
Disagree 7 4 17 3 31
Health
Agree 4 0 77 24 105
Promotion
Strongly Agree 4 0 11 35 50
Disagree 3 0 2 0 5
Neutral 0 1 0 0 1
Working
Conditions Agree 9 0 67 10 86
Strongly Agree 3 3 36 52 94
247
TABLE IV. 18
CHI-SQUARE VALUES FOR HUMAN RESOURCE STRATEGIES
Asymp.
Value Df
Sig. (2-sided)
Teamwork 17.441 6 0.000
248
Step d: Correlation analysis
determine cause and effect relationship. For one-to-one correlation all values in the
correlation table were standardized ranging from -1 to +1, all variables were highly
correlated (Table IV. 19). There existed positive significant correlation between
handling (0.332), health promotion (0.405) and working conditions (0.446), variables
were positively correlated however their causality in presence of other variables was not
substantial, but nevertheless they had a correlation, so we retained them. Whereas flexible
benefits (-0.046) and flexible work arrangements (-0.081) were negatively correlated
(Table IV. 20). This means that the chosen fourteen variables were fairly independent of
each other and eleven chosen variables were positively correlated with organizations
being people centric. Therefore, from the overall results we could conclude that
life, workplace feedback, grievance handling, career progression, health and safety and
249
TABLE IV. 19
RELATIONSHIP BETWEEN HUMAN RESOURCE STRATEGY AND
ORGANIZATIONS BEING PEOPLE CENTRIC
People Centric
Pearson Correlation 1
N 186
N 186
N 186
N 186
N 186
N 186
N 186
People Centric
250
Pearson Correlation 0.808(**)
Workplace Feedback
Sig. (2-tailed) 0.000
N 186
N 186
N 186
N 186
N 186
N 186
N 186
** Correlation significant at the 0.01 level (2-tailed).
* Correlation significant at the 0.05 level (2-tailed).
251
Step e: Developing a model
organizations being people centric, multiple regression analysis was used. R-square value
for the model was 0.764, this was the amount of variance in the predicted variable that was
Hence, organization being people centric is predicted to: increase 0.109 when the
information sharing goes up by one; increase by 0.079 when quality of work-life goes
one; increase by 0.082 when health promotion goes up by one; increase by 0.140
working conditions goes up by one ;and be -0.074 when all eight independent variables
are zero.
252
As is evident from the model that Workplace feedback has the most effect on the
health and safety. The variable grievance handling has a relatively small albeit negative
TABLE IV. 20
BACKWARD REGRESSION ANALYSIS FOR ORGANIZATIONS BEING
PEOPLE CENTRIC
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
Std.
B Beta
Error
(Constant) -0.074 0.085 -0.877 0.382
253
The above Model through regression analysis has helped in explicating the Research
being people centric and Human Resource Strategy. This model could be used to optimize
this relationship. Thus, this confirms that Human Resource Strategies were correlated with
organizations being people centric. These empirical finding are further supported by
49 50 51
researchers studies such as: Wright et al., ; Testa and Ehrhart ; and Singh who
emphasized that organization must treat their employees, as assets .This raised the concern
valuable part of their organization and these Human Resource Strategies must strengthen
employees belief that the organization would provide support to them to deal with
56
Guest and Conway found that grievance resolving provided an opportunity to
communicate about business related issues, harassment at work, job related issues and it
57
also helped to improve the satisfaction level of an employee. Schuler and Jackson
emphasized that career progression was one of an important strategy, which needs to be a
part of Human Resource Strategies as it define what people are required to know and be
58
able to do to carry out work at progressive levels of responsibility. Holt and Andrews
mentioned that providing healthy, safe, and pleasant working conditions helped to achieve
specifically through face to face. Thus, this finally confirms the Research Hypothesis that
254
Research Hypothesis 6: Effectiveness of Human Resource Practices is Co-related with
H0: There exists no relationship between effectiveness of Human Resource Practices and
The null hypothesis states that there exists no correlation between effectiveness of Human
Resource Practices and Human Resource Strategy. The effectiveness of Human Resource
Human Resource Practices was measured by values that were captured for it.
Human Resource Strategy consisted of many aspects, hence to better capture all
255
Step c: Hypothesis testing
Cross-tab with Chi-square test was applied to find association between the two variables.
The output (Table IV. 21) showed that there existed a significant association between
Strategy (independent variable). The Chi-square test reads a significance level of less than
< 0.1. This can be interpreted as that we are 90 percent confident that the interval contains
the true population mean. We can also say that 90 percent of all confidence intervals
formed in this manner (from different samples of the population) will include the true
0.1 is the error or mistake that may happen by chance. Since the value of probability was
less than 0.1 for fifteen independent variables, we may conclude that there has been an
Strategy. Hence, we rejected the null hypothesis H0: There exists no relationship between
256
TABLE IV. 21
CROSSTAB BETWEEN HUMAN RESOURCE STRATEGIES AND
EFFECTIVENESS OF HUMAN RESOURCE PRACTICES
Effectiveness of
Human Resource Practices
Total
Disagree Agree Strongly Agree
Disagree 28 30 0 58
Manpower
Agree 0 102 18 120
Planning
Strongly Agree 0 4 4 8
Disagree 12 12 0 24
Cost Controlling of
Agree 14 105 14 133
Manpower
Strongly Agree 2 19 8 29
Disagree 24 8 0 32
Strongly Agree 0 23 16 39
Disagree 16 16 0 32
Strongly Agree 0 10 9 19
Strongly Disagree 0 1 0 1
Disagree 10 4 0 14
Job Profiling and
Neutral 0 2 2 4
Designation
Agree 17 117 13 147
Strongly Agree 1 12 7 20
257
Effectiveness of
Human Resource Practices
Total
Disagree Agree Strongly Agree
Disagree 4 12 0 16
Neutral 0 3 0 3
Skill Up-gradation
Agree 16 66 7 89
Strongly Agree 8 55 15 78
Disagree 12 8 0 20
Appraisal of
Agree 16 104 11 131
Employee
Strongly Agree 0 24 11 35
Strongly Disagree 3 0 0 3
Disagree 4 6 1 11
Compensation
Neutral 0 1 0 1
Realignment
Agree 19 77 12 108
Strongly Agree 2 52 9 63
186
Total 28 136 22
Disagree 20 12 0 32
Strongly Agree 0 17 13 30
Disagree 23 5 0 28
Managing
Workforce Agree 5 118 5 128
Diversity
Strongly Agree 0 13 17 30
258
Effectiveness of
Human Resource Practices
Total
Disagree Agree Strongly Agree
Disagree 3 2 1 6
Outsourcing Agree 21 74 3 98
Strongly Agree 4 60 18 82
Disagree 15 2 0 17
Customer
Agree 12 104 5 121
Relationship
Strongly Agree 1 30 17 48
Disagree 1 0 0 1
Disagree 9 4 1 14
Strongly Agree 4 47 14 65
Disagree 2 13 1 16
Neutral 0 3 0 3
Convenient
Services
Agree 18 65 6 89
Strongly Agree 8 55 15 78
259
TABLE IV. 22
CHI-SQUARE VALUES FOR HUMAN RESOURCE STRATEGY
Asymp. Sig.
Value df
(2-sided)
Manpower planning 86.062 4 0.000
260
Step d: Correlation analysis
determine cause and effect relationship. For one-to-one correlation all values in the
correlation table were standardized ranging from -1 to +1, all variables were highly
correlated (Table IV. 23). There existed positive significant correlation between
(0.640), whereas rest of variables like cost controlling of manpower (0.387), job
(0.388) and convenient services (0.098) were positively correlated however their
causality in presence of other variables was not substantial, but nevertheless they were
correlation, so we retain them. This means that the chosen fifteen variables were fairly
independent of each other and were correlated with effectiveness of Human Resource
Practices. This supports our Research Hypothesis that effectiveness of Human Resource
Practices is correlated with Human Resource Strategy. Therefore, from the overall results
we could conclude that various Human Resource Strategies discussed here leads to
261
TABLE IV. 23
RELATIONSHIP BETWEEN HUMAN RESOURCE STRATEGY AND
EFFECTIVENESS OF HUMAN RESOURCE PRACTICES
Effectiveness of
HR Practices
Pearson Correlation 1
Effectiveness of HR
Practices Sig. (2-tailed)
N 186
Pearson Correlation 0.640(**)
Manpower Planning Sig. (2-tailed) 0.000
N 186
Pearson Correlation 0.387(**)
Cost Controlling of
Sig. (2-tailed) 0.000
Manpower
N 186
Pearson Correlation 0.743(**)
Talent Acquisition Sig. (2-tailed) 0.000
N 186
Pearson Correlation 0.491(**)
Deployment Sig. (2-tailed) 0.000
N 186
Pearson Correlation 0.380(**)
Job Profiling and
Sig. (2-tailed) 0.000
Designation
N 186
Pearson Correlation 0.174(*)
Skill up-gradation Sig. (2-tailed) 0.018
N 186
Pearson Correlation 0.479(**)
Appraisal of
Sig. (2-tailed) 0.000
Employee
N 186
Effectiveness of
HR Practices
262
Pearson Correlation 0.331(**)
Compensation
Sig. (2-tailed) 0.000
Realignment
N 186
Pearson Correlation 0.623(**)
Promotion Policies Sig. (2-tailed) 0.000
N 186
Pearson Correlation 0.784(**)
Managing Workforce
Sig. (2-tailed) 0.000
Diversity
N 186
Pearson Correlation 0.325(**)
Outsourcing Sig. (2-tailed) 0.000
N 186
Pearson Correlation 0.640(**)
Customer
Sig. (2-tailed) 0.000
Relationship
N 186
Pearson Correlation 0.055
Product Innovation Sig. (2-tailed) 0.459
N 186
Pearson Correlation 0.388(**)
Service Quality Sig. (2-tailed) 0.000
N 186
Pearson Correlation 0.098
Convenient Services Sig. (2-tailed) 0.184
N 186
**Correlation significant at the 0.01 level (2-tailed).
* Correlation significant at the 0.05 level (2-tailed).
263
Step e: Developing a model
effectiveness of Human Resource Practices, multiple regression model was used. R-square
value for the model was 0.759, this was the amount of variance in the predicted variables
that was explained by the independent variables manpower planning, talent acquisition, job
Resource Practices .
Hence, effectiveness of Human Resource Practices is predicted to: increase 0.135 when
manpower planning goes up by one; decreases by 0.303 when talent acquisition goes up
by one; increase by 0.174 when job profile and designation goes up by one; increases by
0115 when promotion policies goes up by one; increases by 0.343 when managing
workforce diversity goes up by one; and be 0.077 when all six independent variables are
zero.
264
As is evident from the model that managing workforce diversity has the most effect on
acquisition, job profile and designation, manpower planning and promotion policies.
TABLE IV. 24
BACKWARD REGRESSION ANALYSIS FOR EFFECTIVENESS OF HUMAN
RESOURCE PRACTICES
Unstandardized Standardized
Coefficients Coefficients
Model t Sig.
Std.
B Beta
Error
(Constant) 0.077 0.066 1.173 0.242
Managing Workforce
0.343 0.059 0.357 5.769 0
Diversity
Convenient Services -0.104 0.039 -0.107 -2.658 0.009
265
The above Model through regression analysis has helped in explicating the Research
Hypothesis. We now have a quantitative model for the relationship between effectiveness
of Human Resource Practices and Human Resource Strategy. This model could be used
to optimize this relationship. Thus, this confirms that Human Resource Strategy correlated
In literature, review it has been emphasized during several instances from quantitative and
60
qualitative research findings of Researchers like Fombrum et al., ; Schuler and
valued and their skills utilized fully to meet the organizational goals, results into the
highlighted that linking of promotion decisions with Human Resource Practices, enable
management to obtain the best talent available within the organization to fill posts. Thus,
this finally proves the Research Hypothesis that effectiveness of Human Resource
266
Research Hypothesis 7: Cross-cultural Differences influence Human Resource
H0: Cross-cultural differences do not influence Human Resource Strategy formulation and
implementation.
The null hypothesis states that there exists no relationship between cross-cultural
Human Resource Strategy was measured by values that were captured for it. Cross-cultural
differences is a complex phenomenon , hence to better capture all perspective it has been
decomposed into following six variables: opinion of employees; time orientation; control;
Cross-tab with Chi-square test was applied to find association between the two variables.
The output (Table IV. 25) showed that there existed a significant association between
Human Resource Strategy and three independent variables. The Chi-square test reads a
significance level of less than < 0.1 for these three variables (opinion of employees;
formality; and identity). This can be interpreted, that we are 90 percent confident that the
267
We can also say that 90 percent of all confidence intervals formed in this manner (from
different samples of the population) will include the true population mean. (Table IV. 26).
However, we cannot draw the same inference for the other three variables (time
0.1 is the error or mistake that may happen by chance. This value of probability was less
than 0.1 for three independent variables (opinion of employees; formality; and identity)
and is more than 0.1 for the rest of the three variables (time orientation; control; and
control, and communication; since these three variables do not show an association, we
accepted the null hypothesis H0: Cross-cultural differences do not influence Human
TABLE IV. 25
CROSSTAB BETWEEN CROSS CULTURAL DIFFERENCES AND HUMAN
RESOURCE STRATEGY
Disagree 0 6 2 14 2 24
Neutral 0 0 2 0 0 2
Opinion of
Employees Agree 3 30 8 80 23 144
Strongly Agree 0 2 0 11 3 16
268
Human Resource Strategy
Total
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
Disagree 0 5 0 12 3 20
Time Agree 1 15 7 55 12 90
Orientation
Strongly Agree 2 18 5 38 13 76
Disagree 0 2 1 10 3 16
Neutral 0 2 0 2 0 4
Control
Agree 3 33 11 82 21 150
Strongly Agree 0 1 0 11 4 16
Strongly
0 0 0 4 0 4
Disagree
Formality Disagree 3 27 12 37 4 83
Agree 0 11 0 64 24 99
Disagree 0 0 3 14 3 20
Neutral 0 3 0 0 0 3
Identity
Agree 2 28 8 87 18 143
Strongly Agree 1 7 1 4 7 20
269
Human Resource Strategy
Total
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
Strongly
0 0 0 1 0 1
Disagree
Disagree 0 5 0 14 9 28
Communic-
ation Neutral 0 0 0 2 0 2
Agree 3 26 12 67 13 121
Strongly Agree 0 7 0 21 6 34
Disagree 0 0 3 14 3 20
Neutral 0 3 0 0 0 3
Identity
Agree 2 28 8 87 18 143
Strongly Agree 1 7 1 4 7 20
TABLE IV. 26
CHI-SQUARE VALUES FOR CROSS-CULTURAL DIFFERENCES
Asymp. Sig.
Value df
(2-sided)
Opinion of
33.345 12 0.001
Employees
Time Orientation Pearson 5.053 8 0.752
Chi-
Control 8.708 12 0.728
square
Formality 46.112 8 0.000
270
However, the above empirical findings do not support the Research Hypothesis stated as
interplay between cultural differences and Human Resource Management. Bowen and
69
Ostroff in their study suggested the influence of culture on Human Resource Practices
Rousseau and Schalk 70; Sparrow et al.,7 1 ; Tung 72; Von Glinow et al., 3 had documented
that Human Resource Strategies needed to be adjusted according to the culture in which
the organization operates and Human Resource professionals needs to be sensitive toward
the cultural variations with respect to employees opinions, communication and hierarchy
74, 75
system . The research work of Hall emphasized that people from different cultural
background needs to synchronize their time and behaviour with their organization to have
76
harmonized and smooth running. Phatak et al., contributed to define the control
culture monitor and evaluate employees. Finally, Cotte and Ratneshwar 77 in their research
viewpoints, one could conclude that cross-cultural differences influence the formulation
and implementation of Human Resource Strategies but owing to the lack of empirical
proofs from the survey data, we cannot accept the Research Hypothesis.
271
Research Hypothesis 8: Organization Culture and Strategy Implementation have a
Strong Relationship.
H0: There exist no relationships between organization culture and strategy implementation.
The null hypothesis states that there exists no relationship between strategy
values that were captured for integration. Organization culture being complex
phenomenon, hence to better capture all perspectives it has been decomposed into
Cross-tab with Chi-square test was applied to find association between the two variables.
The output (Table IV. 27) showed that there existed a significant association between
Chi-square test reads a significance level of less than < 0.1 for five variables (cultural
practices) except one (innovation). This can be interpreted as that we are 90 percent
272
We can also say that 90 percent of all confidence intervals formed in this manner (from
different samples of the population) will include the true population mean (Table IV. 28).
0.1 is the error or mistake that may happen by chance. Since the value of probability was
less than 0.1 for five independent variables except for one, we may conclude that there has
been an association between integration and organization culture. The variable named
innovation with which on the basis of survey data the value of probability is greater than
0.1 but, many Researchers emphasized that the key to organizational success lies in
developing a new set of thinking type of culture to yield innovative idea . To name the
studies one of the most ambitious research programmes in the area of innovation was led
by Van de Van de Ven et al., 78 at the University of Minnesota. The literature review by
was undertaken to identify the culture types (clan, adhocracy, hierarchy, and market)
organization culture. Thus, based on these prior research studies, innovation was
implementation.
273
TABLE IV .27
CROSSTAB BETWEEN ORGANIZATION CULTURE AND INTEGRATION
Integration
Total
Strongly
Disagree Neutral Agree
Agree
Strongly Disagree 0 2 2 0 4
Disagree 5 3 41 1 50
Cultural
Neutral 0 0 7 0 7
Differences
Agree 9 1 82 10 102
Strongly Agree 2 0 17 4 23
Disagree 2 6 43 0 51
Neutral 0 0 3 0 3
Employee
Empowerment
Agree 14 0 98 13 125
Strongly Agree 0 0 5 2 7
Disagree 0 0 4 0 4
Neutral 0 1 0 0 1
Accountability
Agree 13 1 78 7 99
Strongly Agree 3 4 67 8 82
Neutral 0 0 2 0 2
Innovation
Agree 6 4 101 12 123
Strongly Agree 2 0 17 2 21
274
Integration
Total
Strongly
Disagree Neutral Agree
Agree
Disagree 1 0 10 1 12
Neutral 0 1 1 0 2
Mentoring
Agree 12 5 92 9 118
Strongly Agree 3 0 46 5 54
Disagree 16 0 15 0 31
Equal
Opportunity Agree 0 3 120 3 126
Practices
Strongly Agree 0 3 14 12 29
TABLE IV. 28
CHI-SQUARE VALUES FOR ORGANIZATION CULTURE
Asymp. Sig.
Value Df
(2-sided)
Cultural Differences 38.913 12 0.000
275
Step d: Correlation analysis
determine cause and effect relationship. For one-to-one correlation all values in the
correlation table were standardized ranging from -1 to +1, all variables were highly
correlated (Table IV. 29). There existed significant positive correlation between
integration with equal opportunity practices (0.627) whereas rest of variables like
innovation (0.211) and mentoring (0.060) were positively correlated however their
causality in presence of other variables was not substantial, but nevertheless they had a
correlation, so we retain them. This means the chosen six variables were fairly
independent of each other and were correlated with strategy integration within the
organization. This supports our Research Hypothesis that organization culture and strategy
TABLE IV. 29
RELATIONSHIP BETWEEN ORGANIZATION CULTURE AND INTEGRATION
Integration
Pearson Correlation 1
N 186
276
Integration
N 186
N 186
N 186
To determine the quantum by which the independent variables, optimally predicted for
integration, multiple regression model was used. R-square value for the model was 0.413,
this was the amount of variance in the predicted variable that was explained by the
277
Following model derived (Table IV. 30)
Hence, integration is predicted to: increase 0.102 when innovation goes up by one;
increases by 0.456 when equal opportunity practices goes up by one; and be 0.432 when
As is evident from the model that equal opportunity practices has the most effect on the
TABLE IV. 30
BACKWARD REGRESSION ANALYSIS FOR INTEGRATION
Unstandardized Standardized
Model Coefficients Coefficients
t Sig.
Std.
B Beta
Error
(Constant) 0.432 0.056 7.679 0.000
The above Model through regression analysis has helped in explicating the Research
Hypothesis. We now have a quantitative model for the relationship between strategy
implementation and organization culture. This model could be used to optimize this
relationship. Thus, this confirms that organization culture have a relationship with strategy
implementation.
278
These empirical findings were further supported by research studies undertaken by various
81
Researchers. Martin highlighted that integration was necessary for strategy
express their cultural differences. Research scholar for instance, Amabile et al.,85 supported
this finally proves the Research Hypothesis that organization culture and strategy
279
Research Hypothesis 9: HR Strategy and Business Ethics are related.
H0: There exist no relationship between Human Resource Strategy and Business ethics.
The null hypothesis states that there exists no relationship between Business ethics and
Human Resource Strategy. The Human Resource Strategy is the dependent variable in this
relationship as it is the outcome. Human Resource Strategy was measured by values that
to better capture all perspectives it has been decomposed into the following seven
Cross-tab with Chi-square test was applied to find association between the two variables.
The output (Table IV. 31) showed that there existed a significant association between
trustworthiness (dependent variable) and business ethics (independent variables). The Chi-
square test reads a significance level of less than < 0.1. This can be interpreted as that we
are 90 percent confident that the interval contains the true population mean. We can also
say that 90 percent of all confidence intervals formed in this manner (from different
samples of the population) will include the true population mean. (Table IV. 32).
280
0.1 is the error or mistake that may happen by chance. Since the value of probability was
less than 0.1 for six independent variables except privacy, we may conclude that there was
an association between trustworthiness and business ethics. The variable named privacy
with which on the basis of survey data the value of probability was greater than 0.1 .
Researchers like Armstrong 89; and Rao 90 had emphasized that privacy played a key role in
Human Resource Strategy. Issues related to privacy like personal private questions related
with AIDS need not be disclosed. Hence, we rejected the null hypothesis H0: There exist
TABLE IV. 31
CROSSTAB BETWEEN BUSINESS ETHICS AND TRUSTWORTHINESS
Trustworthiness
Total
Strongly
Disagree Neutral Agree
Agree
Disagree 6 0 0 0 6
True Information Neutral 0 2 0 0 2
Shared Agree 6 2 79 21 108
Strongly Agree 0 0 12 58 70
Total 12 4 91 79 186
Disagree 5 0 2 2 9
Neutral 0 2 1 0 3
Equality
Agree 7 2 86 27 122
Strongly Agree 0 0 2 50 52
Total 12 4 91 79 186
Disagree 12 0 8 0 20
Respect of Neutral 0 4 0 0 4
Employees Agree 0 0 74 54 128
Strongly Agree 0 0 9 25 34
Total 12 4 91 79 186
281
Trustworthiness
Total
Strongly
Disagree Neutral Agree
Agree
Disagree 8 4 0 0 12
Consistency in
Agree 4 0 66 4 74
Saying and Doing
Strongly Agree 0 0 25 75 100
Total 12 4 91 79 186
Disagree 2 1 23 22 48
Neutral 2 0 6 8 16
Privacy
Agree 4 2 41 40 87
Strongly Agree 4 1 21 9 35
Total 12 4 91 79 186
TABLE IV. 32
CHI-SQUARE VALUES FOR BUSINESS ETHICS
Asymp.
Value df
Sig. (2-sided)
True Information Shared 251.969 9 0.000
282
Step d: Correlation analysis
determine cause and effect relationship. For one-to-one correlation all values in the
correlation table were standardized ranging from -1 to +1, all variables were highly
correlated (Table IV. 33). There existed positive significant correlation with true
consistency in saying and doing (0.805), and social responsibility (0.600) whereas
privacy had a negative correlation (-0.107). However their causality in presence of other
variables was not substantial, but they have a correlation, so we retain them.
This means that the chosen seven variables were fairly independent of each other and six
variables were correlated with trustworthiness. This supports our Research Hypothesis that
Human Resource Strategy and business ethics are correlated. Therefore, from the overall
results we could conclude that true information shared, equality, respect of employees,
283
TABLE IV. 33
RELATIONSHIP BETWEEN BUSINESS ETHICS AND TRUSTWORTHINESS
Trustworthiness
Pearson Correlation 1
Trustworthiness Sig. (2-tailed)
N 186
Pearson Correlation 0.713(**)
True Information
Sig. (2-tailed) 0.000
Shared
N 186
Pearson Correlation 0.594(**)
Equality Sig. (2-tailed) 0.000
N 186
Pearson Correlation 0.680(**)
Respectful
Sig. (2-tailed) 0.000
Workplace
N 186
Pearson Correlation 0.805(**)
Consistency In
Sig. (2-tailed) 0.000
Saying and Doing
N 186
Pearson Correlation -0.107
Privacy Sig. (2-tailed) 0.144
N 186
284
Step e: Developing a model
To determine the quantum by which the independent variables, optimally predicted for
used. R-square value for the model was 0.784, this was the amount of variance in predicted
variable that was explained by the independent variables true information shared, equality,
and doing)
Hence, Human Resource Strategy is predicted to: increase 0.347 when true information
shared goes up by one; increase by 0.210 when equality goes up by one; increase by
0.159 when respect of employees goes up by one; increase by 0.454 when consistency in
saying and doing goes up by one ;and be -0.212 when all four independent variables are
zero.
As is evident from the model that consistency in saying and doing has the most effect on
285
TABLE IV. 34
BACKWARD REGRESSION ANALYSIS FOR TRUSTWORTHINESS
Unstandardized Standardized
Model Coefficients Coefficients
t Sig.
B Std. Error Beta
The above Model through regression analysis has helped in explicating the Research
Hypothesis. We now have a quantitative model for the relationship between Human
Resource Strategy and business ethics. This model could be used to optimize this
relationship. Thus, this confirms that Human Resource Strategies are correlated with
business ethics. These empirical findings were further supported by earlier findings of
91
following Researchers: Thite mentioned that successful people management depend,
92
how fairly they were treated in the organization. Pickard emphasized following key
and retain best talent organizations require to have high character and credibility. Finally,
94
Woodall and Winstanley mentioned that Human Resource professionals should act as
286
Some of the practises supporting ethical behaviour have been emphasized by Human
Resource executives such as: avoiding abusive behaviour at work, respect for seniors,
adherence to working hours, punctuality, avoiding internet abuse, emphasizing safety, non-
Thus, this finally proves Research Hypothesis that Human Resource Strategy and business
This part of the Chapter dealt with the empirical testing in the backdrop of the previous
research findings and, thus, laying the basis for conclusive reporting and evolving needful
287
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